A STUDY OF THE LABOR INPUT IN SHANGHAI - EFFECTS OF INFORMATION DEVELOPMENT AND EMPLOYMENT POLICY

Generally, production and wages affect labor input in economic analysy s. When observing the Shanghai labor input, we must note that informat ion development and a transformation of the economic system have taken place during the last twenty years, which influenced the change in th e labor input. This paper provides a positive analysis of the labor in put with a special focus on the impact of information development and employment policy. The analysis is based on the estimated labor input function' (LIF), by introducing two factors, information development w hich affects technical external economies of production and the employ ment policy which has been implemented by the government, into the LIF . The results bring to light quantitatively the saved labor input due to information development and the concealed unemployment due to the e mployment policy.