Correlation Analysis on Urbanization Level and Labor Cost in China

Abstract

In recent years, China labor costs continue to rise, especially in urban area, in the form of wage and welfare. There are lots of impact factors that influencing the rising of labor cost in China, while in this paper, we will mainly focus on the urbanization process of China, and correlation between urbanization and labor cost are discussed in details according to the data from 1989 to 2009. We found that both of the urbanization level and labor cost level have rising trends, the changes of the two have a positive correlation, and with the continuous improvement of urbanization level, labor costs will increase and speed up with the acceleration of urbanizing process.