Analyzing The Labor Market Segmentation In Our Country And The Impact On Employment

The labor market segmentation theory was produced in the 19th century 70's, this theory describes the labor market segmentation as several predominant types, such as the primary labor market and secondary labor market segmentation, the internal labor market and exterior labor market segmentation, the city labor market and rural labor market segmentation, the different labor market segmentation between different regions as well as the different labor market segmentation between the different profession and so on.Because there were some special reasons such as historical reason, system reason, regional protectionism reason, profession monopoly reason, market growth reason and so on in our country, and these reasons causes the type of labor market segmentation in our country is very different from other country.The primary labor market and secondary labor market segmentation type is the main classification of labor market segmentation theory. This kind of labor market segmentation is according to the work nature, the working condition as well as the discrimination treatment. The primary labor market is uncompetitive, in this market the supplier is offered by the elites who possess the knowledge and manage skill. Once a worker enters this market, he then can enjoy all sorts of rights of"the insider", and avoids"exterior person"competition. Secondary labor market was competitive, the working conditions here were very severe, the wage here is very low, and the workers here always have the possibility of unemployment. In this market, the supplier is offered by the multitudinous non-skilled workers, the non-special skill workers, the new entered workers, and the workers who enter the city labor market from the countryside. As a result of the asymmetry information, the workers who are out of work in the primary labor market are not willing to get the job from the secondary labor market.The segmentation of the internal labor market and exterior labor market also exists in our country. Internal labor market is the important way of strengthening the human resources management in big modernized enterprises. It has the high organization sense, and it is the regular labor market. It usually has unique wages decision mechanism, and with the aids of internal official methods and other policies such as unofficial standard and the tradition consciousness the enterprise determines the interior staff's promotion. But in exterior labor market, the labor force resources disposition through the competitive system realization, the wages and the employment all decided by the market force.The industrial structure and enterprise structure between China's coastal area and interior area as well as the southern area and northern area are very different. Because of this, it has caused the regional labor market segmentation. After the rapid development of coastal area and the southern local economy, the local authorities formulate a series of regional protectionism stipulation rules one after another, for limiting the labors outside the region from flowing into this region, and protecting the benefits as well as the wage level in that territory. Therefore, the workers outside want to get jobs in quick economy developing region such as Beijing, Shanghai and so on has received all sorts of restrictions.These several kinds of labor market division situations are also serious in hindering the free flowing of labors in different labor markets, thus creates the massive non-voluntary unemployment and the voluntary unemployment. The segmentation of the primary labor market and secondary labor market leads to massive voluntary unemployment in primary labor market; The segmentation of the internal labor market and exterior labor market leads to massive non-voluntary unemployment in exterior labor market; The labor market segmentation between the city and countryside causes the countryside having the massive surplus-labor; The labor market segmentation between different regions causes the flowing stagnation of labor force. Taking into all the factors above, I may draw the conclusion that several kinds of labor market segmentation have lead to tremendous negative influence on the employment, if the government don't pay enough emphasis on it, it will create more unemployment.Facing the negative influence of labor market segmentation on the employment, our government should pay enough attention, and find the solution in the end. It includes: Speeding up the reform of registered permanent residence, perfecting social security systems, improving the market operational mechanism and the employment system, encouraging the non-regular employment, enlarging dynamics and fair education investment, breaking the regional protectionism and breaking profession monopoly and so on. Through the measures above, government should establish the labor market which is unified, competes completely, and enables the labor force flow among different labor markets freely, and finally achieves the goal of depending on the market itself to solve the problem of employment and unemployment.