The Crowding Out Of Employment And The Threshold Characteristics Of State-owned Enterprises

In order to deal with the challenges of the new normal,we fade out the factors of"demand side".It aims to improve the efficiency of resource allocation and promote structural reform of the supply side.Furthermore,the reform of labor factor is the key to the current supply structural side reforms.In addition,labor elements reform of state-owned enterprises is the important factors influencing the employment in our country.First of all,the purpose of the supply side structural reforms is to break the monopoly,and to liberate the productivity.It aims to achieve the optimal allocation of resources and effective supply.State-owned enterprises are the most important aspects in the process of labor reforming.Due to that in the process of resolving excess capacity and clearing up the zombies,it is inevitable that produce a large number of the plight of laid-off and unemployed workers of state-owned.Thus,the reform of state-owned enterprises will affect the employment elasticity of themselves in our country.At the same time,the state-owned enterprises will affect economic growth of our country.Then they will indirectly affect the employment in private enterprises.Secondly,the structural reform of supply side adheres to the direction of market economy reform.We insist market plays a decisive role in the allocation of resources,and correctly play the role of government at the same time.As the marketization advancement of state-owned enterprises in China,the marketing participation of state-owned enterprises is improved.Its operation mechanism and the way of factor allocation are also affected by market.Marketization has a threshold effect to state-owned enterprises,which has drag effect on employment and crowding out effects on employment.The economic situation during the period of transition will affect the stability of the employment situation in our country.At the beginning of the' Thirteenth five-year plans' in China,our country's employment situation is still complex and the task of employment is still arduous.There are double pressures that restrict the employment situation of our country,which are the challenge of employment and weak economic growth.In addition,the economic growth aims to stimulate employment.The employment problem is the attacked points in the background of China's economic development went into new normal stage.The guarantee of full employment is the key to accelerate our country out of the"The third phase of superposition",and across the middle-income trap successfully.The solution of employment is also the swimmer to precision poverty alleviation during the period of the new normal.It is the guarantee of overcoming poverty.It is the important content of the political economics of socialism with Chinese characteristics.In the new normal period,the Chinese government pays more attention to employment problem,and actively takes a series of counter measures to ensure the stability of the employment situation.Based on the background above,this paper,by using panel data of Chinese 30 provinces in 1998-2014,found that,in the background of new normal,the state-owned enterprises play a negative effect in solving the problem of employment,the state-owned enterprises has certain crowding out effect to private enterprises in the employment.State-owned enterprises can substitute the employment of private enterprises at some extent.The substitution effect is adverse to the development of private enterprises.In addition,this kind of crowding out and drag effect is influenced by the marketization level.The relationship of marketization level and employment dragging effect is negative.Low levels of marketization leads to high degree extrusion effect in employment of state-owned enterprise;in the contrary,high levels of marketization leads to low degree.The main contribution of this paper is the following(1)to verify during the new normal,state-owned enterprises influence the current level of employment through two mechanisms:directly and indirectly.Direct mechanism leads to laid-off and unemployed tide and brings pressure to the stable employment,since in the process of structural reform on the supply side,state-owned enterprises aim to capacity,closure of zombie companies.Indirect mechanism means that the state-owned enterprises occupy the resources of the private economy.The occupation may drag the development of private economy and inhibit the employment absorption capacity of private enterprises.So state-owned enterprises have "crowding out" to social employment;(2)trying to find the effect that marketization level imposed on the crowding out effects of employment of state-owned enterprises.This paper demonstrates that the process of marketization reform is benefit to solve the current problem of employment.It confirmed the confidence of the reform of socialist market economy with Chinese characteristics,established the theory of our confidence and roads.Therefore,in order to solve the problem of state-owned enterprises' drag employment of our coyntry,firstly,people should put forward mixing ownership economy reform steadily.In the process of economic transition in China,under the background of dual employment system,the state-owned enterprises should cooperate with the non-state-owned enterprises to maximize the employment.Secondly,the development of service industry in our country lags behind.So improving the industrial structure,encouraging the development of the tertiary industry and cultivating new economic growth point can help us absorb more employment.The problem of excess capacity can be solved.Thirdly,we must strengthen the supply side of the labor reform;fourthly,to develop human capital;lastly we need to change the pattern of government management,better play to the role of the government.