A Study On The Labor Market Failure Of Chinese College Students

Since the 1990's, the economic system of our country has been becoming market-oriented. And Chinese college students' employment market has been established and getting more and more normative. However, it's not perfect. In addition, labor market is a typical information asymmetry market, so there exists a lot of market failure phenomenon, for example, at the micro level, there is adverse selection and moral hazard problem, talented persons' high consumption phenomenon, and college students are unable to apply what they have learned. At the macro level, a large number of graduates can not be allocated in time each year, there exits imbalance of regional allocation and imbalance between supply and demand of the employing units of different nature and so on. Labor market failure of Chinese college students caused a waste of high-level personnel, knowledge and capital, and reduced the efficiency of the market further. It exacerbates the severity of Chinese college students' employment situation, undermines the fairness of the market, and reduces social welfare. This labor market failure is caused by incomplete information and asymmetric information, inadequate supply of public goods, discriminatory employers, labor market segmentation and the existence of monopoly. Based on the successful experience of foreign countries, Chinese government, employers, college and graduates should make great efforts together to overcome labor market failure of Chinese college students.