Dissertation > Economic > Economic planning and management > Labor Economics > Countries in the world of labor economic profile > China

Study on Labor Market’s Flexicurity in Transitioning China

Author WangYang
Tutor YangHeQing
School Capital University of Economics
Course Labor Economics
Keywords Labor Market Flexicurity Labor Market Institutions Flexicurity Model Function of Flexicurity Labor Policy
CLC F249.2
Type PhD thesis
Year 2010
Downloads 352
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Following with the trend of economic globalization and national innovation, China, profiting from the policies of reform and opening to the outside world, has obtained a great many economic performance and social development over the past thirty-one years. Market mechanism is being emphasized in more and more areas because of its positive effects on efficiency.During the period of reform and opening-up, Chinese labor market has undergone a crucial era, namely that the constructing and reconstructing phases. In the wake of the deepening interaction of world economy and the need of borderless flow of various resources, a double bind, which is how to balance the flexibility and security in labor market, was put forwards in China and then caused the extensive concern of Chinese policy-makers and researchers. In fact, since having been raised, this sophisticated issue has been troubling the western countries.For the sake of searching the proper development philosophy and issue-managed methods in China, this dissertation, first of all, draws on the key conceptions and theories of Flexicurity to apprehend intensively the flexicure labor market of European countries, and then derives the constructive experiences from them; Secondly, with the systematically dialectical thinking and positive research methods (such as SPSS and econometric model), the dissertation analyzes and discusses a host of essential issues about Chinese labor market, for example, the constructing and reconstructing process, the potential development prospect, the flexicurity characteristics and approximate flexicurity model; Thirdly, combining micro-perspective with macro-perspective and introducing new data and recent empirical results in theoretical statements, the essay evaluates the effects of Chinese flexicurity labor policies on boosting national economy and labor market efficiency; Eventually, considering the theoretically logical deductions and the empirical findings, the dissertation proposes a kind of flexicurity strategy configuration, market institution arrangement and labor policy design, in order to largely improve the flexicurity model of Chinese labor market.Flexicure labor market roughly consists of four basic institutions, namely that unemployment insurance, active labor market programs (ALMPs), wage-determined mechanism and employment protection legislation (EPL). Taking the multiple national backgrounds (such as history, culture, society, politics, et.al) into account, the essay observes that the real function of above four flexicurity institutions, among diverse countries, will be obviously different. During the transition period, the flexicurity appearance of Chinese labor market, on the whole, is "flexibilization trends with gradual security-enhancing"; Nowadays, the condition of Chinese labor market probably resembles the "Continental Countries’Model", and its flexicure characteristics can be summarized as low flexibility and medium security.With the aid of difference-in-differences model, this dissertation makes an exploratory estimation on Chinese flexicurity institutions’market effects. Based on the positive research of Chinese minimum wage system, the essay finds that it can significantly increase the industrial companies’productivity and finally develop the country’s economy. Consequently, it’s a kind of rational choice, complying with national interests and people’s aspirations, for China to improve the labor policy quality and market institutions application, which will not only better Chinese labor market flexicurity model, but, in deeper sense, actively raise both macroeconomic performance and companies’efficiency as well.

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