Research On Super-stability Employment In China

In today’s China, laborers usually prefer those units whose employment stability are relatively higher such as government organizations, public institutions, and state-owned enterprises, to foreign-invested enterprises, private enterprises and individually-owned businesses, which is forming the phenomenon of human resources "going inside system". There is important theoretical and practical significance for individual decision-making behavior and economic development to research employment stability.Beginning with measurement of employment stability of laborers, this article studies gaps between employment stability of laborers, trade-offs between employment stability and wage, and impact of super-stability employment on economic growth. Main viewpoints are as follows:1. Measurement of employment stability of laborers. There are different stabilities among different types of employment. The current employment stability indicator, labor contract period, isn’t obviously scientific. Firstly, the employee’s practical work period is often less than labor contract period, because employee terminates labor contract due to employer’s violations, or employer terminates labor contract, or layoffs. Secondly, many employees haven’t signed labor contracts with employers. In this article, employment stability index of laborer (ESIL) is used to measure employment stability. ESIL is positive proportional to practical work period, and inverse to difference between retirement age and current entry age. In real economic life, laborer "prior" estimates practical work period in line with own information. The estimation is closely related to the integrity of information.2. Employment classification by perspective of stability. From the perspective, Chinese five employment groups, except for farmers, are divided into four types:(1) flexible employment, they are flexible employment laborers, and ESIL is approximately 0. (2) low-stability employment, they are self-employed individuals, and ESIL is 0-0.029. (3) middle-stability employment, they are those who work in private enterprises, or urban other units, or urban collective units, or township enterprises, and ESIL is 0.029-0.9116. (4) super-stability employment, they work in state-owned units, and ESIL is 0.9116-1.3. The influence factors on super-stability employment. Laborers usually prefer super-stability employment, because there are psychological, cultural, economic, institutional factors:(1) Laborers often are risk-averse, and give greater weight on certainty. (2)There are traditional culture of looking on officials and looking down merchants in China. (3)China’s super-stability employment enterprises generally are returned by resource monopoly, whereas private enterprises are influenced by the world financial crisis. (4)Fairness is lack and resource is imbalance between state-owned and private units.4. The impact of employment stability on laborers. According to the theory of compensating wage differentials, the other conditions being equal, if laborers fully understand that important feature information and flow unrestrictedly, the wages will rise when employment stability decreases. In addition to basic wage, real income of super-stability employment includes benefits, power rents and so on. Currently, the income of super-stability employment laborers is above social average level, and their ESIL is high, so their job opportunities are in shortage. This leads to economic inefficiency and corruption.5. The influence of employment stability on economic growth. Government played a dominant role rather than market in deciding the income of super-stability employment. If employment stability isn’t correctly considered, the allocation of labor resources will be distorted, and economic growth shall be affected.6. The new interpretation on the decline of modern China’s economy. In modern history, British civil service system reformed many times, reduced the number of officials, replaced lifelong system by employment system, controlled government expenditure, transferred former bureaucracy system into modern market management system, and its efficiency is not very different with private enterprises. At the same time, China’s imperial examinations resulted in super-stability employment of feudal bureaucracy, coupling with serious thinking of "restraining business", talent flow gradually ossified. Personnel systems affect directly on employment stability, and then affecting the flow of human resources and economic growth, which provides a new perspective for the new interpretation on the decline of modern China’s economy.7. Countermeasure on super-stability employment. The basic principle is increasing the degree of market allocation of human resources. Ideal condition is that human resources flow free. Specific ideas are as follows:reducing the gap between employment stability of laborers; taking employment stability factor into account during the reform of income distribution; improving social environment which is conducive to free flow of human resources. The innovation of the article may be:defining employment stability index of laborer to measure employment stability of laborer; distorting the allocation of human resources and producing negative impact on economic growth without considering employment stability; trying to explain the decline of China’s economy in modern history.