Research on the Mechanism and Evaluation of Fiscal Revenue Policy´s Employment Effect

As an important mean of macro-economic control, fiscal policy is used to promote employment, which is feasible and effective. After briefly introducing the unemployment theory of development economics, employment theory of anti-classical economics, and unemployment theory of Marxist theory, this paper analyzes the China´s employment situation, and discovers that the urban unemployment is expanding, employment declining in rural areas, and employment for college graduates not optimistic. With the empirical formula proposed by U.S. economist Okun, this paper demonstrates the employment effect of fiscal revenue policy, establishes an evaluation model for the employment effect, and comes up with the result that there is a positive correlation between the changes of the unemployment rate and the changes of the taxes, and the correlation depends on the changes of the parameters. Besides, the reason why fiscal revenue policy fails to have employment effect is discussed, and according to the statistics of China´s fiscal revenue, fiscal revenue policies are put forward to facilitate employment.