The Problem Research Of Small And Micro Enterprises Employment Based On The Adverse Selection Model

Small and micro enterprises have become the main battlefield of creating jobs, the important targets for assistance to deal with the economic downturn, and promote the healthy development of small and micro enterprises in giving impetus to China’s economic development have important significance. Thus, when the small and micro enterprises are facing the "employment difficulties", quickly caught the attention of many scholars, but most studies expand from the industrial restructuring, demographic dividend and human resource management, mainly focused on the study of the recruitment problems, ignoring the rest of the employment process and small the role of the employees, and these resulting conclusions are not entirely applicable.So this paper based on the organic interaction between employers and employees in employment process of small and micro enterprises,and conduct in-depth study.In this paper, we integrate the employer and the employee into the same model with the literature research, questionnaire survey method and adverse selection. Firstly, through literature reading, this paper makes a brief analysis in view of the "employment difficulties" of the small and micro enterprises to clear research questions. Secondly, it summarizes the theories of small and micro enterprises’ employment process and according to the starting point and the ontology of employment could be divided into two stages of recruitment process and employment process. Once again, in-depth analysis of the present employment situation of small and micro enterprises and the main influence factors of the recruitment process. Then, it defines variables and assumptions combining the adverse selection, constructs adverse selection model, and then uses questionnaire survey method to analysis the application of the model for the employment process of small and micro enterprises. Through the model analysis, it concludes: because of adverse selection, the evaluation parameters of employers for employees of different qualities are closer, emolument are same, interference of the employee evaluation parameters enables high emoluments to recruit employees or the competence of employees in enterprises are lower than the average level; equilibrium emolument and equilibrium competence are non-decreasing function of the valuation parameters of employer and non-increasing function of the evaluation parameters of employee, and within a certain range, greater the gap between evaluation parameters of employers and employees, the equilibrium emolument and equilibrium competence will be higher. Lastly, for each variable and conclusions put forward three aspects proposed the related countermeasures to solve the employment problems of small and micro enterprises: employee’s competence, self development and employment environment construction, to strengthen the competitiveness.