Voluntary Unemployment Of College Students In China-based On The View Of Behavioral Economics

In our country, with the reforming of economic system, transformation of unemployment system and the university increasing enrollment, the problem of university students unemployment highlights gradually. Our country needs the massive knowledge labor force during the time of planned economy to the market economy. At the same time, more and more universities graduates actually could not find appropriate works. Therefore, they either were compelled to be at the unemployment condition or at the unemployment condition voluntarily. There are many negative influences for the unemployment of university graduates. Looking from the national stratification plane, the country invested the massive commodity for training university students. After graduated, they were being engaged in the work that the low school records might competent, or they were rather unemployed waiting in home because of being unsatisfied to the current work. With no doubt, the kind of phenomenon leads to insufficient of resources, and also wastes the national resources. Looking from the family stratification plane, it occupies very great proportion of education investment in the household income, however, either they could not find appropriate works when completes the studies actually or they could find the work, but too far to satisfy their own anticipations, so they chose unemployment voluntarily. It is unable to realize to the anticipated education investment, thus it weakens the investing in education enthusiastic. What is the original reason for more and more current university students choose unemployment voluntarily? And how to solve these problems?In the perspective of behavioral economics to explain the current phenomenon, this paper constructs a prospect theory model combining the practical application related behavioral economics theory of voluntary unemployment to analysis the causes of college students, and putting forward measures to address this issue.This article is divided into four chapters. The first chapter is the introduction, which introduced the background and significance of topics which leads to the question of this research——Students'voluntarily unemployment. It was also literature the review for the unemployment question to the domestic and foreign concerned university students. Chapter II is an overview of college students'voluntarily unemployment and behavioral economics. We define the definition of college students'voluntarily unemployment, and give the brief introduction for it, along with analysis of reasons and illustration of results. Chapter III is an short introduction of economic theory, especially prospect theory and construct an behavioral economics model of voluntarily unemployed university graduates with analyzing its economics significant. Moreover, the important part of this paper tries to analyze the situation of voluntarily unemployment using prospect theory of Professor Kahneman and loss aversion. Therefore, I believe the key roles are related to the students'expectations, the not smooth circulation for current labor market flowing in the two levels of market and the successive possibilities of students'finding jobs in mainly labor market. Chapter IV is putting forwards to the policy and advise to solve students'voluntarily unemployment, mainly for the college students whose job cannot meet their needs, so choose unemployment, but they are willing to work and actively find suitable employments.