Empirical Research On The Effect Of The Employment Of The Migrant Workers From The Labour Market Segmentation In China

The paper focuses on the research of the employment of migrant workers, seeks the appropriate solution for the problem, as well as finds the partial solution for the "Three Rural Issues" and "the problem of employment". As we all know, a large number of factors have great impact on the employment of migrant workers. On the basis of literature review at home and abroad, the paper firstly sorts out the status of Chinese labor market segmentation, then it uses the principal componet analysis to extract the most important factor:the labor market segmentation and conducts the empirical research, mechanism studies and research in policy in regard to the effects of labor market segmentation on the employment of migrant workers. Last but not the least, it gets the conclusion of researches and achieves the research goals. The achievements through researches are as follows:1. The paper elaborates on four types of labor market segmentation of China, namely, the separation between town and country, separation among industries, unit separation and region separation. In terms of the establishment of these four types of segmentation, the labor market segmentation of China is in effect the institutional segmentation because it results from institution.2. Adoption of the principal component analysis (PCA) to extract the most important influencing factor on the employment of migrant workers, the research finds that the first principal component factor is the labor market segmentation and qualification of the migrant workers. In the matrix of factor loading after the axis of ratation, the influencing factor loading of labor market segmentation reaches 0.865 and it becomes the most powerful factor in the first principal component factors. Moreover, it also proves the labor market segmentation has magnificent impact on the employment of migrant workers.3. With the methods of linear scaling and dimensionless, it is necessary to turn the dummy variable of labor market segmentation degree into quantitative explanatory variable and to construct employment model to carry out an empirical study based on the effects of labor market segmentation on the migrant worker employment. In the course of empirical study, it is important to continuously optimize the employment model through a series of methods, like quantitative analytical method, OLS method, correlation coefficient method, auxiliary regression method and GLS method. On the other hand, it is also necessary to verify the validity of employment model via a succession of tests, like T test, F test, D-W test, runs test, ADF test, Johansen Cointegration test and Granger Causality test. The results show that:the employment figures of migrant workers is negatively correlated with the separation between town and country, the separation among industries and unit separation; the region separation, under the condition of negligent effects on the migrant workers employment, is advantageous to the optimization of migrant workers employment model and is not important on the employment any longer; the combination of the separation between town and country, separation among industries, unit separation and region separation has remarkable influence on the employment of migrant workers.4. Take Changsha city for example, the field survey found the concrete formats of three functions, namely, utility function, supply function and demand function, which have good representativeness. The paper adopts some theories on modern labor economics and analyses in depth the influencing mechanism of each market separation on the employment of migrant workers. According to a survey of employment intention, under the assumption of no separation in the labor market, the supply curve of migrant workers shows a easier one than the demand curve and finally forms the divergent cobweb, which brings about the fluctuation and instability. In effect, labor market segmentation of China imposes certain restrictions on the employment of migrant workers, such as, the wage elasticity of supply is smaller than the wage elasticity of demand, the supply curve S is steeper than the demand curve D and finally forms the convergent cobweb. As the Chinese saying goes, one coin has two sides. Therefore, the effects of labor market segmentation on the employment are not all negative, and the government should keep the appropriate separation of labor market through right policy intervention. It is essential to pay attention to the positive effects on the market equilibrium of employment.5. The government can foster market mechanism through rational market intervention to eliminate the adverse effects of the institutional market segmentation on the employment of migrant workers and progressively establish a competitive labor market. The policy measures on the management of labor market segmentation and job enlargement of migrant workers must center on the empirical model and mechanism study:government lead and effectively promote the land circulation, strip the welfare part of registered city residence, carry out the system of old-age retirement pension, turn the organic towns into small cities, strengthen infrastructure of power, transportation and communication, bridge the income gap of monopolized industry and competitive industry, readjust the industry structure and increase the employment proportion of tertiary industry, intensify the human capital investment of migrant workers, implement the all-member labor contract system in the government departments and enterprises and institutions with the status of independent legal entity, get rid of the discrimination of migrant workers and develop the informal employment of migrant workers.From the view of paper's conclusion, the study of employment of migrant workers from the perspective of the labor market segmentation is rather unique and original. What is more, the achievements of paper provide the well-designed management policy to the government administrative departments. Though the supply exceeds the demand of migrant workers in China, the problem of employment can be fully resolved with appropriate policies.