Study On Worker's Behaviors Of Choosing The Informal Employment

With the transition of market economy, various elements of market are developing. The development of labor market has brought new opportunities for employment, but also destroyed a large number of traditional jobs. One of the results of the market transition is that the formal employment declined and the informal employment rose.Especially since1995, the growth rate of the informal employment significantly exceeded the growth rate of the urban employment. At present, according to the relevant statistics, informal employment has reached more than1billion.The development of informal employment has attracted the attentions of scholars, but the most research of informal employment are based on the poverty theory, which hold point of view that informal employment is the vulnerable groups'helpless choice when they can't get the formal employment because of discrimination and so on, the informal sector is equal to the low-grade market. These researches ignored the workers'choosing informal jobs voluntarily and the legitimacy of informal employment. This article, using the micro data, studies the mechanism of labor'choosing the informal jobs by using the dynamic panel models, Which emphasizes the factors of influencing the workers'choosing the informal jobs and at the same time re-examines the relationship of the informal employment and the labor market segmentation. The research is of great practical and theoretical meaning and the main conclusions are as follows:1. The informal sector is not equal to the low-grade market and the labor market segmentation is also not deepened with the increase of the informal employment. Unified labor market does not mean the disappearance of informal employment, on the contrary, a perfect and competitive labor market allow a variety of employment form; informal employment is an important part of the labor market.2. The migrants'employments are made of informal employment and formal employment, but the split-flow of the migrants'employment doesn't result in the migrant labor market stratification. The informal employment exist strong self-choice, low quality of social security is the one of main reason for that results.3. Consistent with a previous study, When placing the urban residents and migrant workers in the same labor market background, migrant workers more engaged in informal employment. We think that the system root caused the difference of Urban-rural employment is the migrant workers lacking of civil rights rather than labor market segmentation. Therefore, repairing the migrant's civil rights is the fundamental of changing the migrant workers'weak position of employment.4. Most of self informal employment faces strong credit constraint. They get higher hourly wage rates, but not have the higher average education level. At the same time, for some labor groups of urban workers, the self informal employment may be of a helpless choice, but for migrant workers, the choosing of informal employment has obvious self selection.