Internal Labor Market Theory And Its Applications In The Reform Of State-owned Enterprises

This article discusses a new domain of the labor economics, namely the movement and its characteristic of the internal labor market to exist in the enterprise .The internal labor market theory opened a new angle of view in the labor market research, which has realized the opening of the "the black box" in the labor economics. Skills specific for firm, the on-the-job training, the customary law, the non-symmetry information and trade-union's strength are important reasons for the existence of the internal labor market. The internal labor market has a series of characteristics different with external labor market, which are long-term employment, the delayed payment and interior promotion. The tournament model and delayed payment model are to prove the existence of internal labor market, not only reasonable, but also effective. However, just as the enterprise can face certain limited factors regarding to the market substitution, internal labor market operating efficiency also must face some limited conditions, for instance faced with the limit of the management cost, possibly caused some kind of "the X- low efficiency" as well as external economy environment restriction and so on. As Japanese enterprise management characteristic, the internal labor market has played a vital role in the Japanese high-speed growth economy. Then along with the economical globalization, thorough liberalize, the internal labor market in Japan also faces the challenge. The reform call is being very high, and is changing. However the theory discussion should not disregard the realistic premise, we study the economics as well as the oversea experience so as to instruct the practice in China. In this article, our state-owned enterprise reforms will have a new angle of view with the internal labor market theory, which also is precisely the goal to write this article. Looked from the whole social, the labor market effectively flows still are the guarantee for the resources disposition. The higher external labor market fluidity, internal labor market can be more effective. Based on above analysis, this article think that the internal labor market will be of sole possession in enterprise day by day due to its superiority and efficiency. To establish the perfect internal labor market will be an essential way for the training, the developing and the using of human capital, which also will be...