The Influence On Economic Development In China By Informal Employment

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 current serious employment situation and alleviation of poverty. Adopting a synthetic approach of theoretical and empirical methods, and with reference to the fundamental theories on employment and whole employment in China, points out the reasons for the flexible descent of employment in our country. Aiming at the existing major problems and barriers in informal employment, several measures are proposed to promote the development of it.Firstly, this paper starts from giving a definition to informal employment, elaborating its form and characteristics as well as the developmental background of informal employment in our country. This paper analyzes the personnel's constitution of informal employment from different angles.Secondly, this paper setting about the flexibility of the whole employment in our country, analyzes the reason for the flexible coefficient's descent and illustrates the same directional fluctuation between economic growth and the number of informal employer with the simple regressive model. Thus, this paper reaches a conclusion that at the time of the whole employment existing flexible descent, however, informal employment doesn't appear this phenomenon.Finally, this paper analyzes the functions of the informal employment in promoting economic growth, alleviating the pressure of the employment, raising residents'average income and enhancing people's living level etc. This paper also elaborates the barriers to the development of informal employment, and proposes best policy choices to promote its progress.This paper is divided into five parts totally. The first part is the introduction, introduces the background of putting forward the problem and the original theories of the informal employment. The second part discusses the definition, form and characteristics of the informal employment and informal sector. This part also probes into the background of the formation and development of the informal employment. The third part introduces the quantity relation between economic growth and informal employment in our country. The forth part elaborates the informal employment's contributions to our society, points out the barriers which existing in the development of informal employment at present, and made policy choice for it. The last part is the conclusion, points out the flaws of model in the study process.There is a great potential in the development of informal employment. It is not only an effective way to solve the serious unemployment problem in our country, but also can match the trend that people choose the mode of employment in future. As there are still a lot of barriers to its development, the government should perform its encouraging and supporting functions effectively, encourage, foster and regulate the development of informal employment properly and moderately via its policy making and implementation. Government should act as the role of forwarder and regulator.