Research On The Household Discrimination Between The Formal And Informal Employment

After the reform and opening-up policy,along with the advancement of urbanization in our country,the strength of administrative regulation on labor flow between urban and rural areas is becoming smaller.A large number of rural labor force flow into inner cities.But,because of China’s traditional distribution system that is partial to urban labor force,the urban labor group has a comparative advantage.This kind of relative advantage will foster employment bias policy that is bad for the rural labor group and become employment route locking mechanism:The rural labor is partial to engage in informal employment and the urban labor tends to take part in formal employment.This kind of employment route locking mechanism is based on the household registration system and implement through the identity attribute.But,relative to the urban labor force,the rural labor force has a relative disadvantage in terms of human capital.Hence,this household registration discrimination always is embedded in the human capital discrimination and has the characteristics of recessivation.So,based on this consideration,this article tries to explore the effect of household registration discrimination between the choice of formal employment and informal employment.This will provide direction and theoretical support to further deepen the reform of the household registration system,weaken the strength of institutional discrimination and improve social mobility.This paper is divided into the following parts:The first chapter is introduction.On the basis of elaborating the research background and research significance,this paper puts forward the research content and research goal of this paper,and forms the rigorous research logic and research frame,and states the innovation and deficiency of this paper.The second chapter is literature review and Commentary.This chapter first introduces the study of formal and informal employment by scholars and organizations at home and abroad.Then,it summarizes the relevant theories of formal employment and informal employment.On this basis,Combined with China’s unique household registration system to explore the applicability of the relevant theory in China.The third chapter defines the concept of informal employment.This chapter first analyzes the formal sector and informal sector,formal employment and informal employment from the aspects of departmental characteristics and job characteristics,and then makes a comprehensive and accurate definition of informal employment from the aspects of departmental characteristics and job characteristics.The fourth chapter is research design.This chapter first introduces the relevant data sources,and then through descriptive statistics to illustrate the different attributes of the household registration of labor in the formal employment and informal employment there is a significant difference,Finally,the Oaxaca-Blinder decomposition method of the non-linear regression model is used to investigate the household registration discrimination effect in formal employment and informal employment.The fifth chapter is the robustness test of PSM method.This chapter first introduces the great advantage of PSM in dealing with the problem of endogeneity.Then,based on the endogeneity of control,this paper again explores the household registration discrimination effect in formal employment and informal employment to illustrate the accuracy of this study.The sixth chapter is conclusion and policy suggestion.Based on the above analysis,we can conclude that the discrimination of household registration in formal employment and informal employment s about 12%.Rural household labor force compared to the urban household labor force,the possibility of engaging in formal employment is lower by about 12 percentage points.According to this,this paper put forward relevant policy recommendations to provide the necessary support for the reform and development of China’s labor market...