The Research of Efficiency and Equity in Labor Market

The neo-classical theory assumes that a static efficiency of labor allocation can be achieved through the equilibrium of labor supply and demand in the perfectly competitive labor market.Labor is one of the pure production factors in this theory.But it is not enough if taking into account the interests and needs of a person.The function of labor market is also to enhance the fair and security of worker participation through labor market regulations.In China's labor market,the allocation of labor should be optimized,meanwhile,the equity and security of participation should also be strengthened,so as to realize the unity of efficiency and fairness in labor market.