China's Labor Market Segmentation Of Consumer Credit Demand Impact Studies

The theory of Labor market segmentation or nsumption credit now receives broad attention from the scholars at home and abroad. butt there is no much research on the theory of the relation between the labor market segmentation and the consumption credit. By the literature review and theory study , the paper summarize the labor market segmentation's resent situation and causes in China, then on this foundation analysis why consumption credit's scale is difficult to enlarge.China's labor market segmentation is institutional segmentation.Our country's labor market segmentation contains two characteristics, including the rural-urban dual segmentation and urban inside dual segmentation. There exists serious rural-urban dual segmentation for the traditional system of planned economy. Today because of the rural-urban dual segmentation, the gap of income and consumption is increasing year after year, between urban and rural areas,and the rural residents' consumer credit capacity get constraint. In the urban, because the segmentation brings the Difference in income level , the social security system which constraints the residents' demanding of consumption credit. By empirical analysis , we get the verification that there is vocation segmentation in China, which affect consumption credit.In conclusion, it is that we should break segmentation and set up a unified labor market and a unified consumption credit market.