The Peasant-worker Labour Contracts Research On New Institutional Economics

Contract as basic systems of market economy, has greatly reduced the risk of transaction, saves the transaction cost, and improve the production efficiency. But it can not play role in the peasant-worker. To explain the question what exists in the contract, this article based on the research of related academic achievement,using the method of cost benefit comparative analysis to analyze the peasant-worker's contract problem on the view of the New Institutional Economics .In the process, transaction cost is important ,and the tools of the New Institutional economics such as asset specificity, opportunism and information asymmetry also play a well role in the analysis. Because of peasant- worker's characteristics of fluidity, the behavior of employers to infringe peasant-worker is consistent with their own interests. Then analyze the problems exist in the contract to use a simple game model. This model explained why employers usually like to infringe the peasant-worker's rights in the process trade with peasant-worker which is likely a hammer business. This is the reason why the peasant-worker's contract is infringed easily and frequently, and then find the key factors to solve those problems. In the end is the conclusion and countermeasures how to improve peasant-worker's rights. At last this article use the result of the Guangdong province questionnaire survey to show the problem in the contract of peasant-worker, such as the low signing rate, the contract exist only in name but not in reality, validates the theory's correctness.