In all kinds of production factors, the market-oriented reform of labor factors started early with less resistance. In commemoration of the 40th anniversary of reform and opening up, the market-oriented reform of labor factors is worth recording. The rise of labor market has overturned the "employment method" of the planned economic system, which lacks vibrancy and vitality. And it has built a human resource foundation for the creation of China's miracle of reform and opening up. The market-oriented reform of production factors is the key point of China’s deepening economic reform in the new era. How to further promote the effective allocation of labor forces and the reasonable and orderly flow of talents will be the key to the transition from " population dividends" to "human capital dividends".In order to realize the transformation from "population dividends" to "human capital dividends", we need to deepen the reform of labor market and there’re some suggestions.Firstly, the government should carry out joint reform in the macro-system to provide fundamental social security for the floating population.Secondly, we should further improve the function of talent market and the construction of policy and regulation system to form a reasonable and orderly flow mechanism of talents. Thirdly, we should establish a long-term mechanism of talent education and training, and strengthen the human capital investment.
