The Impact Of Firm Human Capital Investment On Labor Contract Duration

With the rapid society transformation, our country becomes more and more industrialization,marketization and modernization. Market-oriented labor relations cause prominent conflict. Themain reason of this conflict is unstable labor relations. Unreasonable and short-term laborcontract duration cause frequent pass in and out of the workforce, affect the long-termdevelopment of employees and enterprise. The stability and moderate flexibility of the laborcontract duration will become the main development direction of the future harmonious laborrelations. Not only the law mandatory regulations, but also the interests of the enterprise andemployee decide the labor contract duration. And the important factor effecting on the laborcontract duration is human capital investment. Human capital plays a more and more importantrole in the rapid development of society, has a high contribution rate of production which ismore than physical capital. As for if the human capital investment affect the duration of laborcontract, this paper study the relationship between them with the game theory and thecost-benefit theory. The result of this study is that human capital investment can promotes thestable long-term labor contract. To test this result, this paper use the2008national generalsocial survey data with the control variables of the year of the education and corporateownership types,using ols and logistic measurement model to validate it. The empirical resultis in accordance with the theoretical idea. According to the result, this paper puts forward thecorresponding policy suggestions to promote enterprise human capital investment andultimately beneficial to the formation of long-term labor contract.