This paper attempts to analyze the effects of the government's employm
ent policy on the labor input in the city of Shanghai in China. By inc
luding the employment policy factor into the labor input function, thi
s paper estimates Shanghai's concealed unemployment quantitatively. At
the same time, the paper considers a phenomenon that we call informat
ion development in Shanghai. The paper also estimates the effect of in
formation development on Shanghai's labor input (quantitatively).