A Study On Theory And Empirical Evidence Of Internal Labor Markets

Internal Labor Markets(ILM) theory is one of the newest economic theories in lately thirty years, and the newest component of Labor Economics. The analysis of ILM theory will help the development of labor economic theory and enterprise management researching, it provides a very good theory frame and analyzing methods for improving labor market and solving enterprise management problems. ILM is guided by long-term employment contracts, and it pays attention to the long-term stability of employment relation. It is important for increasing the investment of human capital, advancing labor quality, boosting up economic power of country, improving competing power in the world, reducing unemployment phenomenon, enhancing social harmony.This dissertation aims at researching the mode of allocating labor resource and the economic efficient grounds of ILM, discussing the incentive mechanisms of ILM, analyzing the influences of enterprises' human capital accumulation from ILM, debating some influencing factors of ILM's construction, working over ILM's empirical evidence from southern Fujian province's private enterprises, and put forwarding series strategies about private enterprises' ILM construction in the end.Some important conclusions are elicited from the theory and empirical evidence researching of ILM. Firstly, ILM is still an employment institution with economic efficiency, despite ILM facing the challenges from the changing of economic and social environment. Secondly, ILM is a kind of employment institution that be of incentive compatibility, although it is short of market adjustment and incentive mechanisms that External Labor Markets(ELM) has. Thirdly, ILM is important for enterprises' human capital accumulation, and it is a kind of micro mechanisms that can promote human capital investment and accumulation. Fourthly, the ILM of private enterprise in China is a weak one at present, it forms the private enterprise's developing shackles, and it is an important strategy task to construct a reasonable and efficient ILM. Fifthly, the construction of ILM is affected by many factors within and outside enterprises, it is a complicated system project, it depends the efforts and cooperation from enterprises, government and employees.This dissertation has it's innovation in researching angles, researching contents and researching methods. The researching of actuality of private enterprises' ILM and the researching of affecting factors of constructing private enterprises' ILM fill up the vacancy of the researching in China. Certainly, there are still some problems in theories, data and methods for improving aftertime.