An empirical analysis of the prosperity of tertiary sector and residents' income and employment--Sample data of Zhejiang, Anhui and Sichuan provinces from 2006 to 2020, for example

Abstract

With the rapid development of China's economy, the tertiary industry has become the main force driving China's economic growth and absorbing employed people. The article conducts an empirical analysis of the relationship between the development of China's tertiary industry and residents' income and employment. This paper applies the panel data of a total of 48 cities in Zhejiang, Anhui and Sichuan provinces from 2006 to 2020 to regress the tertiary industry development on residents' income and residents' employment respectively, obtaining three results: (1) the tertiary industry has the most significant pulling effect on residents' income in each province.(2) the output value of the tertiary industry shows a negative correlation with the number of residents' employment, but the number of employed people in the tertiary industry is negatively correlated with the number of employed people. (3) there is regional heterogeneity in the income and employment of residents in different regions affected by the development of the tertiary industry. Finally, the paper proposes policy implications for the development of tertiary industry in China.