Study On China's Peasant Workers' Unemployment Insurance System

Peasant worker is a special group that is derived from large number of rural surplus labor force who rushed into the city on the background of the binary system separated rural from urban areas, it is not only an important part of urban industrial workers, but also stay with its rural household registration of farmers. Because of lacking scientific knowledge and lowering in cultural quality, peasant workers are mainly engaged in labor-intensive products which call for manual and lower technology content, coupled with the comprehensive effects of the lack of legal awareness and the concern of society, peasant workers who entered the city for works face huge risks of unemployment, meanwhile they are not protected by the existing unemployment insurance (UI) system. With the pace of China's industrialization and urbanization speeds up, the issue of peasant workers is widespread concerned by both academics and all levels of government, as long as its UI system, but far less than its concern of overall social security system. Wage income is the only drive that attracts large number of peasant workers to rush into the city for jobs, and it's also a fundamental guarantee that maintains its basic living standard in the city. In this way, how to establish an effective UI system for peasant workers has become a general topic concern of academics and political circles of society. In this context, the paper can be topics, from the academic view with the issue discussed.Under a full understanding of the current peasant worker and its UI system is being widespread concerned not only by academics and government but also by all sectors of society, the paper defines the basic definition of UI system for peasant workers, and do a job on the theoretical contents and a more comprehensive review of the current study and the latest progress on peasant worker's UI system both home and abroad, the text also introduces the theoretical basis points of UI system; on the basis of this, this text analyze both micro and macro-economics effects and welfare effects of peasant worker's UI system in a macro-economic framework. So it needs to analyze the status quo, the main problems and its causes of current peasant worker's UI system, after that, we need to find out the breakthrough of the current existing framework, that is to compare the current UI system both home and abroad, and choose one way that fits China to establish a new UI system for its great number of peasant workers, then design it optimized to maximize its utilities and minimize its operating costs to run, Again, the text would like to make a simulation analysis on the optimal duration and payment of UI system of the peasant worker by using of the basic methods of Experimental Economics and finally conclusion and corresponding policy recommendations are being put forward.