The Labor Market Segmentation and the Underemployment of College Graduates

Using the Labor Market Segmentation(LMS) theory,This paper analyses the undergraduates employment dilemma in the Secondary Labor Market and the entry barriers to the Primary Labor Market,and indicates the limitation of undergraduates' improving 'job-screening' as countermeasures.Difficult employment with low salary of undergraduates in current China is neither an occasional phenomenon nor an only result of oversupply.Considering the facts of market failure with LMS,complementary policy should be taken by the governments and some suggestions are given in the end.