Institutional Explanation On Chinese Informal Employment's Appearance And Development

The problem of employment has always been an emphasis in the study of economics, and the study is now focused on the informal employment owing to its great contribution to our country in improvement of the current difficult employment situation and mitigation of poverty. Adopting a synthetic approach of theoretical and empirical methods, and with reference to the definition on informal employment, this paper probes into the situation of informal employment in China and points out the institutional reasons of the produce of informal employment in our country. Several measures are proposed to remove the existing major barriers and promote the development of informal employment.Firstly, this paper starts form the explanation to the concept of informal employment, the research situation of informal employment both in China and abroad. Then it analyzes the total quantity, the constitutions and the characteristics of informal employment, and its connection with formal employment.Secondly, this paper explains the institutional reason of production of our country informal employment through a model which includes an institutional variable and further analyzes the concrete institutional reason. Through analyzes feasibility of developing the informal employment, explains its birth and growth has a theoretical basis and fits the situation of our country. Moreover, informal employment not only conforms to the direction of adjustment of the macro economic structure, but can also meet the requirements of both the employment demand and supply market. But, there are some institutional barriers in developing informal employment, it is official and unofficial barriers, and it will bring some difficulties in designing institution owing to the characteristics of informal employment and so on.Finally, this paper analyzes the institutional environment in developing informal employment, it should establish the living, policy support, service system of informal employment to promoting the development of informal employment.There is a great potential in the development of informal employment. It is not only an effective way to solve the unemployment problem in our country, but also a trend in future mode of employment. As there are still a lot of barriers to its development, the government should perform its encouraging and regulating functions effectively and encourage, foster and regulate the development of informalemployment via its policy making and implementation.