| There are two points of view, sociology and economics, on the reasons for informal employment in cities and towns. The research from economic view can also be made from the macro and micro levels based on supply, demand, and the actors. The macro analysis of this article is based on supply, demand and system, and the micro analysis is based on the microscope of the actor's perspective.In the second chapter, based on the definition of the concept of informal employment,using the relevant data from Statistical Yearbook, this paper analyzes the reasons that cause China's urban informal employment from the perspective of supply and demand. Furthermore, we analyze the causes of China's urban informal employment from the following three points of view: the ownership structure, urban and rural employment division and the household registration system.From the perspective of micro-actors, we build cost-benefit functions for employment, business and government in the third chapter, then we conclude that informal employment is the actors'realistic choice based on costs and benefits through its interactive game. Also we analyze the main factors that impact the costs and benefits of the actors.On the basis of theoretical analysis in the third chapter, in the fourth chapter, we do a positive test on the conclusions of the third chapter using the number of cities and towns that have not participated in the unemployment insurance and the income gap between urban and rural. The test verify the proposal of the third chapter and come to the conclusion that there are two ideas solving the problem of informal employment, narrowing the income gap between urban and rural areas and improving the system.In the last part this paper, we have concluded that informal employment is the realistic choice under the condition of China's economy, and it will exist for a long time. At last, based on the former analysis we put forward the policy proposals about the development of urban informal employment. |
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