The Institutional Supply And Demand Analysis On Stimulating The Development Of Informal Employment

Employment is vital to people's livelihood. With the further deepening of reform, China's current employment situation is increasingly serious,there are a large number of urban laid-off workers and surplus rural laborers as well as new increasing labor in city whose employment have been the main problem of our nation nowadays. The traditional formal employment pattern which could absorb substantial labor in the past has not eased the current employment pressure. With the country's economic reform process, a new mode of employment—the informal employment generated and developed. Informal employment has become the main employment channel for its enormous potential for creating jobs and the ability of absorbing labor force. It is not only an effective way to solve the serious unemployment problem in our country, but also conforms to the trend of employment mode that people choose in the future.In this thesis , the two institutional supply and demand models of informal employment are set up under the framework of Institutional Supply and Demand theory of New Institutional Economics,then the analysis of present institutional supply and demand condition on informal employment was carried on based on the two models,including legal system,social security systems,support and encouragement policies as well as informal institution.Finally the thesis comes to the conclusion that the effective institutional supply is insufficient which has seriously hindered the development of informal employment.It is thought that in the thesis, our country can stimulate the development of our nation's informal employment through drawing on the successful experience of developed countries and increasing effective institutional supply, such as establishing and perfecting the laws related to informal employment, strengthening the constrction of social security systems,implementing the tax preferential policies and encouragement policies, establishing a sound social services support system and making use of the informal institution innovation.