Has the Industrial Diversification reduced the Regional unemployment rate:Evidence from Panel Data of Cities Above Prefecture Level in China
The article uses the panel data of prefecture-level cities in China from 2003 to 2019,and calculates the relevant diversification,irrelevant diversification and overall diversification of regional industries based on the entropy method and the economic and technological relationship between industries.Quantile estimation,mediation effect test and other methods are used to explore the impact and mechanism of industrial diversification on regional unemployment.The study has found that:(ⅰ)Industry-related diversification,unrelated diversification,and overall diversification are significantly positively correlated with the regional unemployment rate,indicating that the development of industry diversification increases regional unemployment rates,and the conclusion is still valid after further endogeneity processing and robustness testing.(ⅱ)the higher the unemployment rate is,the stronger the influence of industrial diversification on the regional unemployment rate is.(ⅲ)diversified industrial development not only directly leads to an increase in local unemployment rates,but also has spatial spillover effects that increase unemployment rates in surrounding areas.(ⅳ)the lack of coordination between the urban population growth effect formed by diversified industrial development and the labor reallocation effect between industries is an important reason for the increase in regional unemployment rate.Therefore,the development of industrial specialisation and diversification should be coordinated,and the professionalism and skills of the labour force should be cultivated to reduce the regional unemployment rate.