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Institutional segmentation of the labor market impact of voluntary unemployment of college graduates

Author: WangZhaoJun
Tutor: YuanLePing
School: Central South University
Course: Labor Economics
Keywords: graduate voluntary unemployment institutional separation of labor market
CLC: G647.38
Type: Master's thesis
Year: 2006
Downloads: 316
Quote: 5
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Abstract


In our country since colleges and universities enlarge scale in 1999, the number of graduate multiple. At the same time, the situation of graduate unemployment is more and more serious, every year hundreds of thousand even million of graduates can’t be employed immediately. At coastal prosperous areas and in big cities that centralize many colleges and universities, graduates are oversupplied comparatively. But there is lack of human resource, especially graduates in our country western an undeveloped areas.According to graduates, labor market can be divided into primary market and secondary market. Institutional order of separable labor market, such as residential address system, human resource system, which make graduates converted cost high from primary market to secondary market. This make graduates face the two difficult choice: either except low salary to be employed at secondary market, or at first carry out professional searching to strive for being employed at primary market. Through comparing net revenue of two different professional carrer in the future, most of the graduates select searching voluntary unemployment. In order to remove searching voluntary unemployment, we should remove institutional separation of labor market and reform system, which will make converted cost lower, so after graduation they will choose job at secondary market and can search for jobs replacing being on the job with unemployment.

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