Abstract This paper applies Chinese provincial panel data from 2001–2015 to conduct an empirical study to investigate the differential impact of China's regional industrial structure upgrading on labor force heterogeneity by constructing a task-theoretic model, and the results show that regional industrial structure upgrading exhibits a significant growth trend in the demand for the senior labor force, whereas the demand for the intermediate and junior labor force demonstrates a certain negative impact. To further analyze the influence path and take into account regional heterogeneity in China, especially in the eastern coastal region, the cost of living variable is further introduced as a cross-multiplier term for the analysis due to the higher cost of living in the region, and the results show that the increase in the cost of living reduces the overall demand for the labor force, which not only is not conducive to the optimization and upgrading of the local industrial structure but also impedes the sustained development of the economy. Based on this, this study proposes corresponding policy recommendations: by upgrading the education and skill levels of the primary labor force, the demand for labor can be effectively increased, thus solving the structural contradiction of employment in China; at the same time, by lowering the cost of living and providing subsidies for renting or purchasing houses, more talent can be attracted to provide solid human resource support for the upgrading of the regional industrial structure.
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Wang et al. (2024) studied this question.
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