Asymmetric Information And The College Graduates Employment Market

With the advent of the new economic era, the continuous refinement of the social division of labor and the continuous strengthening of the degree of specialization, the information not only has become more and more important as a kind of resources, but also highlight its status in the global economy today. The information has become one of the most valuable resources in the 21 century. It is playing an increasingly vital role in the market economy. Well-informed people are more ensured of making good choices. While in economic activities, the information asymmetry is an important problem. It is because the substantial information can increase the transaction costs of distinguishing its authenticity in addition to facilitate the people. With the decrease of the rate of graduates employment, it has arisen a problem that the employment is difficult and is followed with wide-ranging interest by society in recent years. The causes of this difficult problem have a number of aspects. They are inextricably related to our country's socio-economic development, reform of higher education, labor and personnel system and the world economy and environment as well as they are affected by the government, the universities, the employment market and the college students own various factors. What's more, there is also a reason which can not be ignored, that is the existence of information asymmetry problem in the college graduates employment market.According to the fundamental principles of information economics and based on the asymmetric information, the dissertation makes a deep inquiry and analysis of the college graduates employment market which included the current situation, the problem existed and the countermeasure.The dissertation consists of six sections.Chapter 1 is part of introduction in which we point out the current situation and factors of the graduates employment market, and on the basis of definite research purpose, the dissertation looks back the relational documents.Chapter 2 is mainly an overview of the information asymmetry theory which includes the definition of information asymmetry theory, classification and basic contents.Chapter 3 mainly makes the detailed analysis of the impact factors of the college graduates employment, including demand factors, supply factors, socio-cultural factors, regional economic factors, economic structure factors and labor market system factors. The analysis above can lay a foundation for the research of the information asymmetry below in the college graduates employment market.Chapter 4,5 and 6 as the focal parts of this dissertation apply the information asymmetry theory in the graduates employment market. A series of beneficial conclusions and enlightenments will be gained on the basis of analyzing this theory.Chapter 4 further analyses a series of questions which exist in the graduates employment market from the start of the information asymmetry problem, based on the current situation in the college graduates employment market. It introduces the manifestation of the information asymmetry problem in the college graduates employment market. That is the information asymmetry among units, candidates and universities exists in various stage of the course of employment. It also introduces the negative impacts to the college graduates which are caused by the information asymmetry. Such as the graduates expect too much during the job seeking, the"herd behavior"in their careers, the question of integrity of the graduates, the high consumption of the college talents and the structural dislocation of the universities'supplement.Chapter 5 mainly applies the information asymmetry theory to explain the difficult problem of the college graduates employment in detail and then further elaborates the problem of the adverse selection and moral hazard which are caused by the information asymmetry in the college graduates employment market. What's more, this chapter introduces the methods to circumvent of the information asymmetry, including the theory of the signal transmission and the information discrimination against adverse selection and incentive mechanism and constraint against moral hazard.At the same time, this chapter combines the adverse selection model and game theory and then makes the in-depth analysis of the information asymmetry and the cost and the benefits caused by the acts of bad faith in the college graduates employment market, so that we can understand the mentality of both game and non-faith motive. Adverse selection refers to a market with quality product on the phenomenon of exclusion of poor quality. In this theory, the employing units don't understand the real job information of the graduates. In order to reduce the risk of recruitment, the employing units will eventually use adverse selection, namely, reducing the risk treatment by holding down wages. When the reservation wage of the graduates is in excess of the level of the wage, graduates with the high ability exit from the market, graduates with the low ability stay. The phenomenon of"left inferior survival gifted"comes out. The same principle also exists in the selection of the graduates to the employing units.The risks of moral hazard in the college graduates employment market are as follows: in the process of recruitment, in order to seek a better job, graduates often rack their brains layers of packaging from apparel to school diploma, which makes employing units hardly identification, Meanwhile, in order to attract the best talents, employing units have a false propaganda, making the graduates suffered huge losses. It leads to the increase of lost, low of market efficiency and restriction of employment market. Information asymmetry makes the employing units and graduates both faced with the unfavorable situation.Chapter 5 mainly brings forward the countermeasures on the basis of front theoretical research according to the information asymmetry in the college graduates employment market. It respectively makes the universities,the employing units,the college graduates and the society as the start point. Major universities should set up scientific planning, make a full play to the transmission of the information between the employing units and graduates and to the strengthening of the role of graduates employment guidance. Employing units should improve the unit recruit methods in order to reduce messaging costs as well as develop the scientific talent identification methods. Graduates should establish their own sense of integrity, listen to and make use of career guidance classes actively, adjust to their employment expect and ensure the authenticity of their information. Society as a whole credit system should be set up. In addition, the society should build on the role of government intervention and non-market impact so that the operation efficiency of the mechanism of the employment market can be improved.As a graduate who is about to enter a society, it is inevitable to participate in various recruitment, it is vital that how to find a suitable job. The innovation of this dissertation is that I use the information asymmetry theory and game theory, add to our own experience and feeling, and discuss the reason for this phenomenon, the performance of asymmetric information in the graduate employment market, and the effects and consequences to graduates and employing units. Another aspect of this dissertation gives a new attempt, that is not only the employing units are on the situation of information asymmetry to graduates, but also the graduates themselves are in a inferior side because of the lack understanding of the employing units'real situation.At last, this dissertation offers countermeasures to avoid the consequences corresponding which will have the great theoretical and practical significance.