Effect Research Of Social Security Implementation Mechanism To Labor Relations

Easing labor relations is one of the important reasons of the appearance of social security system. With the continuous development of social economy, the function of the social security system has become more widely and socialization, and the realistic requirement brought by national economic development makes the social security system change ceaselessly and makes the difference of its implementation mechanism be also becoming more and more obvious. No matter what, as long as there is the social security system, it will involve the problems of the allocation and balance of capital and labor interests.Therefore, the influence of social security system of labor relations can’t be neglected, and the realization mechanism of social security being right or not will be directly related to the harmony of labor relations. In theory, there is inner logical relationship between the social security and labor relations. In combination with thoughts of welfare economics and method of new classical and trying to build a model of labor relations including the factor of social security is the starting point of theoretical analysis framework. According to the mathematical analysis on the model, it concludes the first and second order conditions of harmonious and stable labor relations namely the maximization of social welfare. In addition that the other external environmental factors such as economic environment have important influence to the interaction between social security and labor relations mentioned in theoretical analysis is verified on the discussion of constant term.The effect analysis of social security factors directly affecting the labor relations is from two angles:exogenous social security system provided by the government and endogenous security system provided by enterprises. Among them, exogenous part of analysis distinguishes the different types of government:authority government and democratic government. In the analysis on the game relation between different types of government, enterprises and workers, we find that a different way of the government action choice, finally causes the different result of the game and puts different influence on labor relations. Endogenous part of analysis takes the game relationship between enterprise and laborers in the operation of independent security system provided by the enterprise as analysis object. It concludes that providing or not of the endogenous security system is the result of comprehensive considering its own strength and the condition of market competition of the enterprise, is not affected by the working attitude of laborers. The working attitude of workers being positive or not is also not affected by whether companies provide added security system, workers will only consider the current labor market conditions and their own preference for leisure aspects to choose their own behaviors. Of course, generally speaking, under the premise of a perfect negotiation mechanism, enterprises providing added security system are positive for the improvement of the labor relations. The analysis of different security model including insurance fund, the welfare state mode, the compulsive deposit, discovers that the source of security funds of the three models and the treatment are different, the impact on the labor relations are also different. Companies’cost paying accounting for the main body of the security fund sources easy to cause vassal labor relations; The access of the treatment being directly related to fund accumulation is also not conducive to the access of laborer’s equal status; On the other hand, the national tax or complete accumulation of individual cost paying being the guarantee source of the fund and fairness being more emphasized on the access of the treatment will create conditions for fair talks between workers and capital and forming Shared labor relations. Certainly we can’t ignore the economic efficiency and sustainability under the system of vassal labor relations and that the equal sharing system of labor relations maybe produce low efficiency and unsustainable. Combining with the characteristics of income distribution during economic transition and the running characteristics of the social security system to analyze the effect under level constraints of social security, it is concluded that workers only get low levels of remuneration in primary distribution failing to share the outcome of the rapid development of transition economy and face the long-term shortage of security in redistribution, but capital owners enjoy most of the benefits of economic transformation. If does not carry on reform to the distribution system, they must face the contradiction in the long-term. Through the theoretical analysis of direct effect, we put forward two propositions:Proposition 1:the different forms of social security implementation mechanisms including the main body who sets up the system, the system mode selected will put a different influence on industrial relations;Proposition 2:along with the economic transition in our country, capital and labor’s income gap is widening, but in the long term in the case of the increasing demand of social security, the lack of supply is fundamentally, then the improvement of the level of social security is limited, all of the above will affect the improvement of labor relations.Social security implementation mechanism indirectly affects labor relations through two intermediary variable, the human capital investment and labor market. Social security’s influence on the human capital investment:from the view of the rational economic man, the influence to human capital investment from both pay-as-you-go and fund accumulation system is positive; From the perspective of no-economic man, considering gift and altruistic motives, social security is also conducive to the increase of human capital investment of the next generation. And theoretical analysis of this article thinks that the increase of human capital investment promptes the direction of evolution of labor relations from recessivation to contradiction, from intense state to ease to reduction, and is an important determinant of the stable labor relations. Social security affects labor relations indirectly through the labor market:first, begining from two perspectives of effects of labor demand and supply:from a macro point of view, social security can bring the increase of labor demand, but from the micro perspective it will bring labor marginal costs rise, so it is not conducive to labor demand growth. If considering the external conditions, the influence of the social security to the labor demand may be not obvious. The social security system has a certain degree of influence on various aspects of labor supply. There are differences among the effects on the choice of workers employment behavior because the contrast between substitution effect and income effect, the types of security, payment mechanism brought by social security are different. Most of the results of theory analysis on the choice of employee retirement behavior prove that social security is conducive to retire ahead of schedule, but also will be limited to the realistic condition; Social security benefits provided will bring the increase of the passive labor supply, but also influenced by the external market conditions and the institutional environment constraints; Perfect and reasonable social security system can promote the reasonable flow and efficient allocation of labor, vice will hinder the role. The impact on the labor relations from labor market is reflected in the following analysis. On the one hand, changes of labor supply and demand prompt the adjustment of labor market structure, and labor shortage is very beneficial to improve the status of laborers and labor relations; On the other hand, the rational flow of labor, effective configuration promote the better implementation of interests of both sides, and is conducive to the stable and harmonious labor relations. Through the analysis of the indirect effect, we put forward the following proposition:proposition 3:The social security system affects labor relations indirectly by influencing the human capital investment. Either from the perspective of "economic man" or "no-economic man", whether it being pay-as-you-go or fund accumulation, social security system will have a positive impact on the increase of human capital investment. And the increase of human capital investment promptes the direction of evolution of labor relations from recessivation to contradiction, from intense state to ease to reduction, and is an important determinant of the stable labor relations. Proposition 4:social security system influences labor relations indirectly by labor market. Changes of labor supply and demand promote the structure adjustment of labor market, labor shortage is very beneficial to improve the status of laborers and labor relations; The rational flow and effective configuration of labor promotes the better implementation of the interests of both sides and is good for the stable and harmonious labor relations.By building multiple regression equations of static and dynamic model of labor relations, we use a provincial panel data of our country from 1998 to 2011 to measure three theoretical propositions. It is found that after controlling other factors that affect labor relations, direct and indirect effect that the level and the coverage of social security to labor relations are both evident:The result of the direct effect is that the elasticity that the influence of the level of social security to labor relations is 0.4545, the elasticity of influence of the social security coverage is 0.3192. That is to say the level of social security increases every 1%, the number of labor dispute cases will fall by 0.4545%, the coverage of social security expands per 1% the dependent variable value will increase by 0.3192%; The result of the indirect effect is that the elastic coefficient of social security factors are negative, which both previous and current level of social security and the expansion of coverage will reduce cases of labor dispute and play a positive role to the improvement of the labor relations. Among the above conclusions, the theoretical hypothesis in this paper is demonstrated effectively by others exept the direct effect of the coverage of social security. And through the analysis of the dynamic panel data model, when considering the mutual influence between the equation and the behavior of the entire economic system relations, social security factors don’t play an indirect effect on the labor relations through the human capital investment and labor market factors, but only through the improvement of their own to play effect directly in the improvement of labor relations, and the elastic level of the effect is 0.1568, namely the level of social security increases every 1% the logarithmic value of labor dispute cases will fall by 0.1568%. The results only partially support the above theoretical propositions.We verify the first theoretical propositions through the case analysis of the impact of social security mode of the United States and Sweden on labor relations. According to the analysis about the influence of the development of social security system and the implementation of current social security mechanism of American and Swedish to labor relations, it is concluded that the United States and Sweden are same as a democracy county, but the governments eventually choose different mode and implementation mechanism of social security, that has a relationship with the difference of economic, cultural, political, ideological status factors. While different realization mechanism of social security of the United States and Sweden, including the basic principles that setting up the social security system needs to follow, division of the level and important degree of the security, the way of fund-raising (the responsibility of security), the degree of the role of the market, the set of the level of security, the conditions of enjoying the treatment, etc. will put different influence on labor relations.According to the conclusion of the empirical and case analysis, the realization mechanism of social security of our county should do the following improvement:to improve the level of social security moderately; to perfect the social security legislation; to ensure the unity of the social security system; to improve the level of social assistance and social welfare; to fully fund personal old-age pension accounts; to attache great importance to its role of the market, etc to help to improve the labor relations in China and establishment of the type of the labor relations of "equality and efficiency".