Description:
Under innovation-induced growth, industry upgrading depends on skilled worker and its allocation efficiency.However,Incomplete market including monopoly and unbalanced industry impeled skilled worker to flow into rent-seeking departments,which caused skill misallocation across sectors,and thus efficiency loss. Using industy-level data over 2003-2018,this paper applied Hsieh&Klenow Model to measure allocation efficiency of skill worker across sectors in China. Result shows that both industry and service face strict distortion of skilled workers,and service is more serious, which partly explained the low-productivity of service. Further it shows that by correcting distortion, efficiency in industry will increase by 18.99% - 21.90%, and service by 59.28% - 83.46%, and joint sector by 39.39% - 59.60%.At final,it proposed to improve allocation efficiency through breaking monopoly, eliminating labor market friction and promoting free-flow of skilled workers