Research on the effect of regional economy development on the employment effect in China -based on regression analysis of 1994~2011 panel data

Based on Cob-Douglas production function model, a theoretical model of the employment effect of industrial structure evolution was built. Then, the mixed regression model and individual fixed effect regression model were applied respectively to test the factors influencing the effect of regional employment empirically. Through F test, the results of fixed-effect regression model were adopted. The results demonstrate that the population is a significant positive factor for the employment effect, and the GDP per capita is a negative factor for the employment effects of China's four major economic regions. Moreover, the impact physical capital investment, human capital investment and policy on the regional employment effect are different according to the characteristics of regional economic development.