A Study On Labor Market Segmentation And Employment Mode Innovation

Labor market segmentation theory is also called dual labor market theory. It emphasizes the effects that institutional and social factors bring to the payment of work. Kell.C. initiated this theory in the paper the segmentation of labor market in 1954. American economists P.B.Doeringer and M.J.Piore brought forward the dual labor market model in their book internal labor market and manpower analysis. They divided the labor market into two noncompetitive parts: primary segments and secondary segments. This model became the representative model of labor market segmentation theory.Structural division is a basic characteristic of the labor market segmentation in China in the period of transformation. Urban-rural segmentation and ownershiop segmentation is standing out phenomena. At the same time, district segmentation, industry segmentation and dual labor market also exist. Labor market segmentation clags the development of city, increases the gap of income, restricts the human capital investment, reduces economic efficiency, decreases employment and cumbers the development of nonpublic-owned company. It also brings bad effects on the development of workers and the employment system of company. So, we should use the employment mode experience of advanced market economy for reference. And we also need to reform the employment system of state-owned company and promote the development of the informal economy to hasten the growth of the labor market in China. Meanwhile we should breakthrough labor market segmentation by innovating the mechanism of macroscopical adjustment, the labor supply and demand system, the employment system, the registered permanent residence administration system, urban-rural social security system and employment training system.There are four parts in the paper. The structure of the paper is as follows: Chapter 1 surveys the western labor market segmentation theory. The situation and character of labor market segmentation in China and its effects are discussed in chapter 2. Chapter 3 first introduces the studies of labor market segmentation theory in China ,second compares the two typical employment modes in condition of market economy and uses them for references of the employment system reform and the development of the informal economy, at last introduces the five innovations needed to build the market employment mode under macroscopical adjustment. The last chapter is the summary of the paper.