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

This paper first reviews the employment and existing problems of China’s migrant workers, discusses China’s labor market segmentation and its causes with regards to the realities. Then uses the econometrics research methods to establish the relation between labor market segmentation and the employment of migrant workers. At last proposes the countermeasures to solve the problems of employment of migrant workers in China. The main achievements are as follows:1. Talks about the causes of migrant workers in China, and the important contribution they made to China’s economic development. However, there still exist some problems including the underestimated level of wages for migrant workers, poor working environment, unsound social security, low level of public services and rights protection, and the identity transformation difficulties, etc.2. The main types of segmentation of China’s labor market are urban-rural segmentation, industry segmentation, unit segmentation and region segmentation. The labor market segmentation of China in fact is institutional segmentation. Household registration management, industrial policy, the inefficiency of the state-owned units, regional economic development level and other factors are the causes of China’s labor market segmentation.3. With the methods of OLS, the correlation coefficient, ADF test, Johansen Cointegration rank test and Granger Causality test, the paper gets the employment model of the effects of China’s labor market segmentation on the migrant worker employment. The results show that:the employment of migrant workers is negatively correlated with the urban-rural segmentation, industry segmentation, and unit segmentation, is not relevant to region segmentation. The three types of segmentation jointly have a significant impact on the employment of migrant workers.4. According to the empirical results, the paper further proposes some policy measures aiming to solve the problems of the employment of migrant workers:unit segmentation could be reduced by getting rid of identity discrimination of migrant workers, implementation of the labor contract system, and the development of non-formal employment; industry segmentation could be reduced by developing a fair and effective employment market, strengthen the training and improve the wages of migrant workers, promote industrial restructure and the development of the county industry to create more employment opportunities for migrant workers; urban-rural segmentation could be reduced by stripping the welfare related to the city residence registration, reform the land system to improve the efficiency of land allocation, and improve the social security system covering both urban and rural areas. The number of migrant workers may increase after the reduction of the degree of the labor market segmentation.