Study On Labor Market Administrative Segmentation In China

China is in the historic reform process of its economic transition and social transformation. The labor market development faces a series of problems. The problems, such as migrant workers, Administrative monopoly the income gap caused by administrative monopoly, are restricting the further development of China's economy. This thesis discusses these problems of the labor market under the framework of Labor Market Segmentation (LMS) theories.In maturing market economy countries, the intervention of government in the labor market is rare. Labor market segmentation is commonly caused by the imperfect mechanism of Labor market. But in China the labor market not only exist the division caused by imperfect mechanism of labor market itself, but also exist the division caused by a series of inefficiency institutional arrangements and the poor exercise of administrative power. In our country, labor market segmentation is mainly urban-rural segmentation caused by the household registration system and administrative monopoly industry segmentation caused by administrative monopoly. The latter have the more influence to the Labor market much. We define it as labor market administrative segmentation.Labor market urban-rural segmentation limits the employment fields of rural labor. The relative abundant of the low-skilled migrant workers in local markets stimulated enterprise technology choice. This results in speedy increasing of labor intensive industries. The performance of economic growth in China is on the rapid growth of secondary industry and the relative lag of third industry. While migrant workers mainly obtain employment in the second industrial, the third industries are the main channel of the college students'employment. It reveals the relevant reasons of coexisting of labor shortage and the difficult of student employment. In administrative monopoly industry segmentation, Administrative monopoly enterprises using its monopoly status in the products market and administrative privileges, obtain excess profit, and bring extra income to its formal employees. And in competitive industry labor market, human capital gains are less than labor the marginal productivity. Administrative monopoly industries segmentation in labor market limited the flow of employee between industries. Competitive industry laborer difficultly flowing to the high income administrative monopoly industries, make the income gap presents the tendency of expansion. The low returns of human capital in competitive industry market impact the power laborer human capital accumulation in the competitive industry.Eliminating administrative segmentation in the labor market is to eliminate the government behavior causing segmentation, let the market mechanism play the leading role in the allocation of resources. We can reform the inefficiency institutional arrangements and reduce government intervention in the market to cultivate market mechanism, as far as eliminate administrative segmentation in the labor market and gradually establish a unified and more competitive labor market.