Research On The Relationship Between Labor Market Regulation,Informal Sector Competition And Enterprise Technological Innovation

Labor relation has always played an important role in theoretical economics.Labor relation theory is an important part of Marxist political economics.Also Engels considered that labor relation is necessary for the normal running of society.China is still in the primary stage of socialism,and there are various ownership of economic components so that labor relation is more complex and the labor market is full of chaos.Labor market policies are significant for coordinating labor relation,standardizing labor behavior,stimulating labor vitality,and promoting enterprise innovation.Based on the world bank’s 2012 survey about the business environment of Chinese enterprises,this study empirically analyzes the relationship between labor market regulation and enterprise technological innovation from the perspective of informal sector competition by using new intermediary test process and Bootstrapping test method.The empirical results show that labor market regulation inhibits product innovation but promotes process innovation.In addition,informal sector competition has indirect effect between labor market regulation and technological innovation.Specifically,informal sector competition plays a part in mediating role in labor market regulation and product innovation,and the mediating effect accounts for about 41% of the total effect.In the process of enterprise innovation,the value between the amount of shielding and the amount of direct shielding is about 0.62.Further investigation of sub-samples shows that the labor market regulation significantly inhibits process innovation and product innovation of small and medium-sized enterprises through indirect effects of informal sector competition,but has no obvious inhibitory effect on innovation of large enterprises.In addition,indirect effects of informal sector competition are significant in non-high-tech enterprises,while not in high-tech enterprises.On the basis of the research conclusion,this paper tries to put forwardpolicy suggestions in the following aspects: further opening the household registration system,breaking the barriers of labor mobility,and stimulating the innovation vitality of labor market.The supply of labor market policies should be regulated according to "enterprises";The reform of the market economy should be deepened to create a sound business environment.Various forms of employment should be provided to promote the employment of vulnerable groups,and increase the supply of innovation policies to non-high-tech enterprises.Finally,this paper uses the improving theory of Pareto and Kaldo to analyze the conclusion of the whole paper.The policy suggestions of this paper will play an important guiding role in comprehensively deepening the reform of market economy,removing the obstacles of government system and mechanism,releasing the dividends of reform and promoting economic development.