Unemployment Theory, Unemployment Insurance Mechanism Design And China's Unemployment Insurance Institutions

There are many theories that explain unemployment in economics, such as the classical unemployment theory , search and match theory, efficient wage theory, inside-outside theory ,nature unemployment rate theory, implicit contract theory,Todaro's theory……Using these theories, we can have a better understand on China'sunemployment problem.One way to solve the unemployment problem is to construct the unemployment system. The unemployment insurance system can smooth consumption, promote productivity , stabilize employment. The unemployment insurance can be founded in different ways. Each has its advantages and shortcomings.According to the different kinds of unemployment, the different characters of labor, the information construction of labor market, the optimum unemployment system should function in different ways.Since 1970s, China has transited from a plan economy to a market economy. Together with economic construction changes, the country's surplus labor flowing to the city, unemployment problem appeared.The China has constructed an unemployment insurance system. But it still has some shortcomings. We can follow some directions to overcome such shortcomings.