The Game Theroy Analysis On The Effects Of The New Labor Contract On Labor Productivty

On June 29,2007,the Standing Committee of the Tenth National People 's Congress revised and passed the "People' s Labor Contract Law",which came into effect on January 1,2008.There are intense discussions on the introduction of the law in the academic and business circles.Although the "the law of the People's Republic of China on employment contracts" cause controversy,it plays a vital role on protection of the legitimate rights and interests of workers in the construction of harmonious labor relations.During the two sessions of 2016,many representatives submitted the"Proposal on Amending the Labor Contract ".At the same time,the original Finance Minister Lou Ji wei proposed that the labor contract law can't protect the enterprise enough,reducing the labor market liquidity,and resulting in labor productivity too low.so that the new labor contract"once again is brought to the trouble.There are again heated discussion,such as "North Chang South Dong"."North Chang" indicates Chang Kai,who supports the "the law of the People's Republic of China on employment contracts" to protect the rights and interests of workers.on the other hand,"South Dong"indicates Dong Bao hua,who think "the law of the People's Republic of China on employment contracts" focused more on protecting the legitimate rights and interests of workers.He also consider that the law lacks of protection of enterprise.The business community,Foxconn President Gou said that the new labor contract is not only conducive to the protection of workers,but also can improve the competitiveness of enterprises,is conducive to their own transformation.Which caused the author's thinking,whether the new labor contract is not conducive to the introduction of enterprise development,reducing labor productivity.This paper are divided into six sections.The first part introduces the research background,the significance of the research and the research ideas of this paper.Because of the difficulty of data collection,this paper discusses the new labor contract The impact of labor productivity.Then,the paper summarizes the relevant literatures that affect the factors of labor productivity and the research status of new labor contract both at home and abroad.After analyzing the research of labor contract law,it is found that the current labor contract law The impact of research less,mainly in labor relations,human capital,business costs,employment and more research.The second chapter introduces the legislative background and legislative purpose of this law from the institutional changes of the labor contract law and compares it with the labor law.What is the impact of the labor contract law on enterprises and laborers,Help behind theanalysis.The third chapter starts from the short term,and the labor productivity is mainly the variable labor force.The labor force itself not only includes the quantity of labor force,but also the "quality" of the labor force(1),the quality is the ability of the laborer and the laborer's effort.According to the comparison in Chapter 2,the labor contract law will raise the wage level of the laborers.Then,the stackelberg game model is constructed.If the employer first implements the labor contract law,the employee is the follower decide whether to work hard.The result of the game analysis is that the employer is the best practice is to implement the new labor contract,and then the employees will improve their own wage efforts to improve labor productivity.As the marginal utility diminishes,wage increases will inevitably lead to a gradual increase in labor productivity,which will eventually return to pre-implementation levels.And then the next section introduce the long term effects.In the fourth chapter,the concept of human capital is introduced.Human capital,the engine of economic growth plays an important role in long-term economic growth.The relevant provisions of the new labor contract have led enterprises and employees to have more solid labor relations.This article through the construction of an unlimited number of repeated games concluded that in a good macroeconomic environment,the employer and the employee's game is the result of increased human capital investment in the long term is conducive to improving business productivity.In the fifth chapter through Foxconn case to analyze the effect of the implementation of the new law,through case analysis to prove the theory.Chapter 6 draws conclusions from the previous analysis and makes policy recommendations.The conclusion of this paper is that the implementation of the labor contract law is effective for improving labor productivity,especially in the long term.Although the new labor contract to improve the cost of human resources management,the state can give small businesses appropriate subsidies,On the other hand to improve the competition between enterprises out of the non-competitive enterprises,contribute to the improvement of human resources management level and model changes.At the same time,the introduction of the new labor contract to improve human capital investment effectively promote the economic and business transformation,which in our new normal economic environment is an urgent need.