Economic Effects Of Information Asymmetry In The Human Resources Recruitment

As new economical time arrival, The information is playing the vital role in the market economy than any time formerly, and it will continue to play an invaluable role in the market. However, the pure market economy is not entirely natural and reasonable, it would not necessarily bring the best results through relying entirely on the free market mechanism of the market economy, it easily leads to market failures, asymmetric information is the performance of its failure.In the market economy, there are plenty of information asymmetries, especially in investment, employment, environmental protection and social welfare and so on.In the labor market, there exits asymmetry information situation between the employing units and candidates .In the process of recruitment ,in order to seek a better unit, Candidates often rack their brains layers of packaging from apparel to school diploma, which makes units hardly identification, Meanwhile, in order to attract the best talents, employing units have a false propaganda, making the candidates suffered huge losses. Information asymmetry makes the employing units and candidates both faced with the unfavorable situation.As a graduate who is about to enter a society, it is inevitable to participate in the various recruitment, it is vital that how to find a suitable job. In this paper, I use the economics of asymmetric information theory and game theory, the recruitment Principle in Human resources management, and adds to its own experience and feelings, discussed the performance of asymmetric information in the labor market, the effects and consequences to candidates and employers, the reasons for this phenomenon, offered countermeasures to avoid the consequences of the corresponding, there has the great theoretical and practical significance.As mentioned to the information asymmetries of labor market, people first think that the employing units are very limited on the candidates understanding of the information, the screening cost of their information is extremely expensive ,Thus they are in a inferior side. This paper discusses the process of the human resources recruitment in details, employing units are on the situation of information asymmetry to candidates, the reasons for occurs and ways to avoid. At the same time, another aspect of this paper gives a new attempt, that is candidates are also in the state of information asymmetry, are very limited to the employing units 's real situation, sometimes even accept the wrong message, especially in the labor market of the buyer's , this phenomenon is particularly serious. This paper analysises in details. In the last article, proposing the solutions that job-seekers should take the initiative to collect and disseminate information .This conclusion has a significant guiding on the large number of job-seekers.