Page 84 - IJPS-10-2

International Journal of

Population Studies

RESEARCH ARTICLE
Two-way employment-driving effect of

manufacturing and producer services: Evidence
from China

1
Yanan Liang , and Cheng Zhang *
2
1 Department of Economics Teaching and Research, Party School of the Central Committee of the
Communist Party of China (National Academy of Governance), Beijing, China
2 Department of Population and Labor Economics, School of Applied Economics, University of
Chinese Academy of Social Sciences, Beijing, China

Abstract

Employment holds paramount importance in people’s lives, and the employment
interaction between manufacturing and producer services plays a crucial role in
steadily expanding employment opportunities, thereby achieving high-quality full
employment. This paper delves into the data of A-share listed companies in China from
2012 to 2020, exploring the two-way effects of producer services on manufacturing
and vice versa. The results reveal a significantly positive two-way employment-driving
effect between manufacturing and producer services. Notably, the employment-
driving effect of producer services is stronger than that of manufacturing enterprises.
The results of the heterogeneity test based on the breakdown types of producer
services and manufacturing highlight that the employment-driving effect of high-tech
*Corresponding author: services on manufacturing is more prominent, approximately 2.85 times greater than
Cheng Zhang
(zc199509@126.com) that of non-high-tech services. This suggests a clear and substantial scale technology
effect. Conversely, the employment-driving effect of high-tech manufacturing on
Citation: Liang, Y. & Zhang, C. producer services is found to be insignificant. In conclusion, the findings underscore
(2024). Two-way employment-
driving effect of manufacturing and the significant impact of producer services in driving manufacturing employment.
producer services: Evidence from It is imperative for the government to enhance its support for producer services
China. International Journal of enterprises and broaden employment opportunities within these sectors.
Population Studies, 10(2):78-89.
https://doi.org/10.36922/ijps.0316
Received: March 7, 2023 Keywords: Manufacturing employment; Employment in producer services; Employment-
Accepted: November 1, 2023 driving effect; Simultaneous equation
Published Online: December 8,
2023
Copyright: © 2023 Author(s). 1. Introduction
This is an Open-Access article
distributed under the terms of the Employment stands as a fundamental aspect of livelihood. As a worldwide topic, the issue
Creative Commons Attribution of employment is of great concern to all countries. Countries with large populations often
License, permitting distribution,
and reproduction in any medium, grapple with heightened employment pressures, and China, with its huge population
provided the original work is base, bears greater aggregate pressure. The decline in economic growth has disrupted
properly cited. this landscape, as the new demand for labor fails to compensate for job losses resulting
Publisher’s Note: AccScience from the shift in industrial structure. Despite China’s population reaching its peak and
Publishing remains neutral with shifting to negative growth, coupled with an accelerating decline in the working-age
regard to jurisdictional claims in
published maps and institutional population, this does not signal a relaxation of employment pressure. Instead, it denotes
affiliations. a shift from aggregate to structural pressure.

Volume 10 Issue 2 (2024) 78 https://doi.org/10.36922/ijps.0316