A Research Of The Effect Of The Labor Market Segmentation On The Employment In China

There exists serious segmentation in China's labor market, which impairs the development of employment. As we know, with the study of western Labor Market Segmentation for several decades, a systematic theory of modern labor market segmentation including corresponding methods and policy propositions has been formed. With this theory of modern labor market segmentation, in this paper, we studied the affection of employment for labor market segmentation.As a country in the economic transition period, China's labor market segmentation is institutional segmentation, which is different form those of western countries. Our country's labor market segmentation contains two characteristics, including the rural-urban dual segmentation and urban inside dual segmentation. Firstly, on the foundation of the theory of segmentation, the paper analyzes the cause of becoming and statement of our country's labor market segmentation. On the middle age of 1990s, with the prosperity of private economy and formation of competitive and monopolistic industry, the ownership segmentation continuously weakens while vocation segmentation gradually develops in city labor market. Secondly, the paper analyzes the affection of two segmentation characteristics to employment.In conclusion, we propose the way of solving the problem of unemployment of China. It is that we should break segmentation and set up a unified labor market. The china's institutional labor market segmentation is a unique phenomenon in the economic transition period, and its evolvement reflects the economic reform gradually depending and market force increasing.