Research On The Influence Of Labor Contract Law On The Flexibility Of Labor Market In China

The Labor Contract Law has always been controversial since its implementation.The bone of contention focuses on the impact of the Labor Contract Law on the flexibility of China's labor market,which has become a hot topic in society.Based on the theoretical and practical background,from the perspective of labor contract duration and the difficulty of dismiss,this paper studies the impact of the Labor Contract Law on the flexibility of China's labor market.To specific,this article aims to study the impact of the Labor Contract Law on the term of labor contract,and whether it has different significant impacts on various regions,industry categories and companies.Furthermore,whether the difficulty of dismissal has changed significantly before and after the implementation of the labor contract law,and whether there are significant differences between diverse natures of companies,litigants and causes of litigation?To research the impact of the Labor Contract Law on the flexibility of China's labor market,this paper conducts an empirical research by using the CHIP data of 2007 and 2013,as well as the judgment documents of the termination of labor contract on Chinese referee document website.In general,the study finds that the Labor Contract Law does not have a significantly restrictive effect on the flexibility of China's labor market,from the two indicators of labor contract duration and enterprise dismissal difficulty.Specifically,the proportion of long-term contracts signed by the laborers does not show a significant upward trend after the implementation of the Labor Contract Law,but it demonstrates that there are significant differences among various regions,industry categories,and enterprises.Besides,in terms of the enterprise dismissal difficulty,compared with 2007,the loss rate of enterprises in the cases of the dissolution of labor contract in 2013 shows a downward trend,and the amount of enterprises' compensation only increased slightly.On basis of study conclusion,this paper puts forward some countermeasures from the perspectives of government,enterprises and laborers.Firstly,the authority is supposed to speed up the process of improving the labor legal system and strengthen law enforcement as well as supervision of the labor legal system.Secondly,while improving their own operation and management model,enterprises should make more efforts to implement the labor legal system and better abide by the labor legal law.Thirdly,by raising awareness of rights and interests together with the familiarity of relevant laws and regulations,workers ought to continuously enhance their abilities so as to improve their structural forces in the labor market.