Research On Employment Protection Institution Of Labor Market

This dissertation aims to analyze employment protection institution that was an important component of the labor market system. The article elaborated rights foundation of employment protection, analyze rights redistribution how to impact economic activities from property rights economics, and discusses the establishment, reform process of employment protection institution in developed countries from a historical perspective. I used Multinational and domestic panel data to research the economic impact of employment protection institution on employment and income, discuss employment protection effects in the modern labor market institutions. Finally, we discuss China’s labor market reform process and give us policy recommendations.Theoretically, the paper breakthrough efficiency standards from price theory research paradigm, and built employment protection on the rights basis, to re-explore the underlying theoretical basis. Laborers with economic and social duality, which determines the workers on the one hand as the owner of the labor force, on the other hand, as a member of society exist. Employment protection is the result of the conflict with economic and social rights, to determine the construction of labor market is balance between efficiency and equality, flexibility and security. The property rights analysis of employment protection answer the empirical paradox of employment protection either reduce efficiency and may improve efficiency. Theoretically, incomplete contract between employers and employees, will lead to some of the resources to become "common property", resulting in "rent". Employment protection may be redistribute this part of Total income (the first meaning of "Rent"), and may also be the result of rent-seeking (the second sense of "Rent"). The two different meanings "rent" is due to the different definition of the right. Distribution of employment protection interests from different sources, it led to a different economic effect. If the employment protection is the type of productive effort, that will promote people to increase private capital investment, improve production efficiency, the bigger corporate economic surplus, so that both sides can allocate more remaining fuzzy property rights clearly defined, forming a virtuous cycle of investment and cooperation. If the employment protection is a product of rent-seeking by the parties, then you more than my little allocation, economic increment is zero, the two sides was a zero-sum game, the more likely is a negative-sum game for both sides. In order to compete in their favor allocation rules, the two sides will invest a lot of resources in the field of distribution, with a view to trying to influence policy decisions.The paper first reviews the history of the employment protection established and reform process in the postwar OECD countries, summarize the contents of EPL reform of this countries. Secondly, we ues multinational panel data analyszs the Employment Protection Act’s impact on employment and unemployment. Specifically, EPL has a significantly affect on unemployment rate, youth unemployment, the unemployment rate of women, the higher unemployment rate, the higher the degree of employment protection and a greater impact on the employment of women and young people."Hiring/firing control" and "conscription concern" on the impact of youth employment. Finally, from a historical perspective, we recalled the changing course of the employment system in PRC,"from status to contract" is the historical path of the labor contract system in our country. The empirical results show that the labor contract law as employment protection mechanisms play a positive role, because of the existence of this law, to improve the strength of wage negotiations, workers’ monthly wage increased, narrowing the wage distribution inequality degree.Employment protection and social security, active labor market policies constitute important labor market institutions "iron triangle",play a huge role in the labor market. Strict employment protection depends on the country’s economic development level, history, culture, political tendencies, and so on. Employment protection is the outcome of social rights higher than economic rights, equal values higher than efficiency. Therefore, the construction of labor market institutions will seek a dynamic balance between flexibility and stability, high employment protection will deuce labor market rigidities, low employment protection will reduce survival of the laborers. From the perspective of employment protection, at the "Lewis turning point" stage, government targets should from capital priority to gradually shift the labor priority, regulate the labor market system, and protect the legitimate rights and interests of laborers. At the same time, the government should reduce the possible adverse factors of employment protection, EPL should positioned defined property rights, protect property rights, format productive effort system, which has led to the cooperation of workers and enterprises,build harmony labor relations,and avoid negative effects.