Enterprise Labor Dispatching Employing Way The Perspective Of New Institutional Economics

Labor dispatch is a new form of flexible employment,accompanied by the development of social and economy. It originallyappeared in the United States, grew up in Japan and Europe, and nowis widely practiced in many countries. Labor dispatch started late in ourcountry, but develop extremely rapidly. As a new form of flexibleemployment, labor dispatch not only provides companies with alow-cost way of employment, but also provides a new way to ease thesevere employment pressure in China. On the other hand, the externaland temporary features of labor dispatch not only create greatcomplexity and uncertainty in practice, but also restrict normativeresearch and consistent conclusions on it among theorists.The first chapter is introduction. Section I analyzes thecharacteristics of the trilateral relationship of labor dispatch, the presentsituation and problems in the development of labor dispatch. Section IIis the literature review, which gives a systematic review of research ondispatch activities of several disciplines and the present status ofresearch in Contract Economics and its related branches. Section IIIpoints out the direction of this study. Section IV outlines the structureand research methods of this paper.The second chapter analyzes the characteristics of the contractbetween the user firm and dispatching workers. Section I points out thatenterprises change their relationship with employees from the contractof traditional employment into a market contract, which combines theadvantages of human resources outsourcing and organizationalgovernance, but it also blurs the corporate boundaries. Section IIcompared the characteristics of contract under two kinds ofemployment, which first points out that the traditional employmentcontract has the characteristics of coexistence of formal contracts and relational contracts and long-term, then analyses the contractualrelationship between user firm and the dispatch staff, and points out thecharacteristics of implicit contract and short-term.Chapter III is a comparative analysis on the transaction cost oftraditional employment and in the short term. The first section analyzesthe cost of traditional employment; section II analyzes the transactioncost of labor dispatching; Section III analyzes the impact of “ChinasLabor Contract Law "on the labor costs of traditional employment, andthen points out the advantage of labor dispatching on transaction cost.The fourth chapter analyzes the existing problems in labordispatching. The first section points out that implicit contract relys on theself-enforcement, which makes the dispatching labors’ rights more likelyto be infringed. Section II analyzes the lack of special capital investmentbetween user firm and dispatching workers. Section points out thatlabor dispatching does not have advantages on cost and efficiency inthe long term.Earnings of two employment modes are compared In chapter IV.The first two sections of this chapter discuss the companys earnings oflabor dispatching and traditional employment. In section III, earnings ofthe two employment modes were compared.The sixth chapter explains the significance of formal contract toinventive dispatching workers. We firstly analyze the behavior ofdispatching workers, then study their special human capital investmentbehavior based on the use of principal-agent framework, in order toreveal the factors of affecting the optimal level of the special humancapital investment behavior, and some corresponding incentivemethods are discussed.The final chapter is the conclusion. This chapter first reviews themain points of this article, and then gives some proposals to improve theequity and efficiency in labor dispatch for its problems and deficiencies, in order to effectively safeguard the legitimate rights of dispatchingworkers from unlawful infringement.