The Resolution, Based On The Labor Market Structure Of The Scp Paradigm

The labor market, as the key factor market which links the areas of production and consumption, is essential to the national economy and social development. At present, many problems in China's economic development such as unemployment, widening of distribution gap, the issue of migrant rural workers and university students'employment are reflected in the labor market. Many scholars attempted to explain these problems from a macro-perspective, which involves such things as the difference of urban and rural employment systems and surplus labor force. These researches are based on institutional analysis and describe economic phenomena aggregately; as a result, many of them came up with identical suggestions. Based on the S-C-P theory, a paradigm of industrial organization, this dissertation analyzes the interrelationship between structure, conduct and performance, and investigates various factors that cause the poor performance and all sorts of undesirable practice in the labor market from a structural point of view. In conclusion, some recommendations are provided towards the improvement of the performance in labor market.In the first part, the dissertation analyzes the feasibility of industrial research of the labor market structure and advances "a bilateral monopoly labor market based on endogenous advantages", an ideal labor market structure. Then it evaluates the seller's and the buyers' market power of China's labor market respectively and make a comparison between them according to the industrial data collected. As a result, significant structural differences are found between the industrial labor markets.In the second part, the study reveals that the power of labor market supplier is mainly determined by the workers'human capital and the nature of the industry in which they were employed. The workers in the monopoly industries have significant market power because of the profit-sharing and the "insiders" management system together with the influence of their human capital value can be fully measured. On the contrary, those in the industries that undergo heated competition have weaker market power than their counterpart, at the same time, the Household Registration System further weakens the labor's market power. As for the buyers'side, the buyers'monopoly power rooted in the major market share of the state-owned employment and the imbalance of labor supply and demand, which endued employers with monopsony force. The comparison between the employees'and employers'market power reveals that the two kinds of monopsony dominate almost all sectors of the national economy. Therefore, the writer draws the conclusion that China's labor market structure is a "Dual Monopsony" pattern. In the last part, the conduct and performance of China's current labor market structure is analyzed. On one hand, the state-owned monopsony formed the state-owned enterprises' internal labor market and the labor supply monopoly, which put the labor into backward integration. As a consequence, the state-owned employment in the labor market comes into a self-closed and narrow state, while the non-state-owned employment is in congestion. This not only amounts to the ownership segmentation of labor market, but also does harm to social equity and the expansion of employment. As a result, the labor market is in an obvious "Advantaged Capital and Disadvantaged Labor" situation. On the other hand, the monopsony caused by excessive supply brought about the excessive competition of the labor and made the wage fluctuating around the low level, human capital investment blocked, the consumer demand restrained, income distribution gap widened and the labor participation rate remaining high, which eventually affects the economic growth. After making a comparison between the ideal labor market structure and our current situation, the writer suggests that we should balance the market power and create an effective mechanism for the labor market by weakening the exogenous monopoly power, breaking the closure of state-owned labor market, activating the functions of trade union, strengthening human capital investment, developing the intermediate organizations of the labor market, and forming a three-component labor market mechanism which includes information, technology and security.The main innovations of the dissertation can be summarized as follow:Firstly, the S-C-P paradigm and structural description are applied in the research; the negative phenomena and performance effects in China's labor market are analyzed from both micro-perspective and meso-perspective; some recommendations are provided for the formulation of policy concerning labor market. Secondly, considering the large-scale, large geographic mobility and labor market segmentation in our country, the labor market structure is measured from the industry perspective, and based on this measure, a "Dual Monospony" labor market situation is presented.Thirdly, rather than a unilateral study which only focuses on the sellers'side of labor market as many former researches did before, this research attempts to measure the buyer's market power and compares the buyers'market power with the sellers'market power. Fourthly, this dissertation advances an ideal labor market structure——"a bilateral monopoly labor market based on endogenous advantages", thus further light is thrown on the improvement of the labor market performance.