China's Private Enterprises Competitive And Incentive Mechanism

Efficiency wage theory is one of the newest development of macroeconomics during the nearly 20 years. In our country, most of the research on efficiency wage theory is about the unemployment problem in China. There is seldom research that link the competitive power of enterprises with efficiency wage theory. Through the investigation of the development of the competitive power of Chinese private enterprises, we conclude that the employee's efficiency in private enterprises is higher than that in the state-owned enterprise. Using efficiency wage models and linking with the realities of Chinese labor market, this paper explains the inconsequent conclusions. It is considered in this paper that the owners of Chinese private enterprises tightly grasped the main features of Chinese labor market and highly improved the efficiency of enterprise by way of using different inspiring ways on different kinds of employees. It gives a lot to the improvement of Chinese private enterprises.