Labor Market Segmentation And China's Structural Unemployment

At present, China is going through from planned economy to market economy, from traditional agricultural society to modern industrial society. During the changes of economic system structure and industrial structure, the problem of structural unemployment of China is becoming more severe. The structural unemployment has not merely increased the difficulty of solving the unemployment problem in China, but also aggravated the unemployment crisis of China with the problem of total amount unemployment together. The situation of "high growth, low employment"appears. Therefore, the research of the problem of structural unemployment has strong realistic meaning and urgency. The structural unemployment comes from the contradiction of labor's supply and demand. And the labor market is basic channel which gathers and solves the contradiction of labor's supply and demand. So, this paper thinks that in order to solve the problem of the structural unemployment of our country ,we must know about the current situation of labor market segmentation in China and the mechanism defect existing in the labor market which causes the contradiction of supply and demand, and use the theory of labor market segmentation to explain the contradiction of supply and demand and seek for the effective way to solve the problem of structural unemployment. On the basis of existing research results of both at home and abroad, this paper are divided into four parts to analyze inherent relation of the labor market segmentation and the structural unemployment. First,this paper explains the influence of the rural-urban labor market segmentation to the structural unemployment. The obvious rural-urban labor market segmentation causes the high wage in city, hinders the mobility of surplus labor in rural area, and degrades the improvement of rural laborer's quality, which expands the contradiction of labor's supply and demand. Second, we analyze the impact of the segmentation of the primary and the secondary labor market in city on structural unemployment. During reforming and opening-up, the primary and the secondary labor market in city is developing into the trade segmentation from the system segmentation. The high salary of the monopoly industry and trade barrier are formed in the two grades market segmentation in the city, which has contained the increase in the investment of human capital and worsened the state of the structural unemployment of China finally. Third,directing against the phenomenon of employment question among university students in China at present, the paper carries on the instance analysis to the problem of structural unemployment of the graduate within market segmentation especially. Finally, we propose the way of solving the problem of structural unemployment of China. It is that we should break market segmentation and set up a unified labor market.