The Effect of the Information Development and the Employment Policy on the Labor Input

the Case Studies of Shanghai and Japan

Abstract

This paper analysis the effects of information development and employment policy on labor input in Shanghai and Japan by estimating labor input function (LIF). The estimation considers both information development which affects external economies on the industries, and employment policy which is being implemented by the government under the system of planned-economy or by the board of directors under the system of market economy. The reduction in labor inputs due to information development and the concealed unemployment due to employment policy are both estimated and analysed quantitatively. This paper provids an example of a developing country like China (Shanghai) and a developed country like Japan.