Job Search Analysis Of Graduates Under The Dual Labor Market

In this paper, the job search theory is used to analyze the graduates’ job searchbehavior under the dual labor market. A main goal of this paper is to find themechanism of how does the segmented labor market affect the job search behavior ofthe graduates. Then we can give some proposals for solving the current difficulty ofChinese graduates’ employment.Based on the labor market segmentation theory, this paper divides the domesticlabor market into two labor markets, the primary market and the secondary market.And we use the theory of job search to analyze the graduates’ behavior in the twomarkets respectively. The result shows that the segmented labor market is a criticalreason for the current difficulty of Chinese graduates’ unemployment. The mechanismis: when the labor market is segmented into two markets, there are significantdifferences between them about the pay and the conditions, which determine thedifferent job search behavior of graduates; the search strategy of graduates is relatedto the offer arrival rate in the primary market because of the stability of the market,while it is related to the reservation wages in the secondary market because of theapproximate imperfect competition of labor in this market; the aggregate supply ofgraduates is greatly more than the aggregate demand of graduates in the primary labormarket, and this causes the employment pressure in the primary labor market; thelow-pay character of the secondary labor market causes the low-pay employment andthe voluntary unemployment of the graduates. Besides, we find that the individualeffort for job search is very important when the graduates are searching jobs, andimproving the level of effort is useful for getting jobs.According to our conclusion, there are two proposals for solving the currentdifficulty of Chinese graduates’ employment. Firstly, eliminate the unreasonableinstitutional segmentation and speed up the upgrading of industrial structure to reducethe segmentation of labor market. Secondly, pay more attention to improve thegraduates’ abilities before they are going to search jobs and give more guidance aboutemployment to the graduates when they are searching jobs.