Study On The Appropriate Government Intervention In The Labor Amrket

The market mechanism plays a fundamental role in the allocation of the labor resources, but it doesn’t mean that the labor market doesn’t need be intervened by the government. Whether in theory or practice, it always needs the government to take some actions like economic, legal or administrative form to intervene the labor market. In this paper, the economic means of government intervention in the labor market as a starting point, from the positive employment expenditure perspective, to study the moderate problem of our government intervention in the labor market. This paper mainly studied from the following aspects.Firstly, analyze the government intervention in the labor market based on some theories. First of all, from the perspective of market failure theory, Keynes and Stiglitz government intervention theory, labor market equilibrium theory, to demonstrate the necessity of government intervention in the labor market. Then, from the point of view of the active employment expenditure, put forward the measure of government intervention in the labor market, including investment scale and performance of the government intervention. In the end, analyzing the problem of the proper government intervention in the labor market, mainly focusing on the significance of the government intervention in the labor market moderately and the consequences of not moderate government intervention, as well as how to measure the moderate government intervention in the labor market.Secondly, carry out analysis of international experience of government intervention in the labor market. This article analyzes the OECD national government intervention degree and the performance in the labor market. In addition, introduce the employment policy of typical countries government intervention in the labor market. Through the international comparison, degree and performance of government intervention in the labor market intervention does not necessarily exist the correlation, that is to say, the higher the degree of government intervention in the labor market, does not mean that the level of unemployment is lower or the level of employment is higher, this suggests that government intervention in the labor market exists a "degree".Thirdly, analyze the moderation of the government intervention in the labor market in China. Then, based on the analysis of the process and level of the government intervention in the labor market, separately from the object functions about the output maximization and minimization of unemployment, build the theory and econometric model to measure the active employment expenditure of moderate level. The calculation results show that the size of the active employment expenditure in China is not appropriation, combined with horizontal comparison results and the reality of the situation, find that the current active employment expenditure level in China is relatively low, lack of intervention. Based on the above analysis, further explore the policy orientation about government intervention in the labor market in China. The results show that the current active employment level of expenditure is not only affected by the year of employment, but also has certain rigidity, which is also affected by the active employment expenditure level a year ago, at the same time, may also be affected by some other factors, such as financial ability, system ability etc. Based on the above results, when our government wants to adjust the active employment expenditure level in future, it should follow some guidelines, such as government led principle, principle of demand, the gradual principle of reality etc.Finally, put forward the policy recommendations about prompting the government moderate intervention in the labor market. In view of the current level of the active employment expenditure in China and the above analysis results, the paper puts forward relevant policy recommendations, such as the promotion of economic development; gradually expand the positive employment expenditure scale; the reasonable adjustment of the active employment expenditure structure; make up for the absence of system, the construction of the "flexible and security" labor market system; the establishment of a unified labor market etc.