The Incentive Effects of Private Enterprises' Long-term Employment

Private enterprises play an important role in the economic growth and employment increase in China, but they can't ignore of private enterprises' short-term employment and series problems cause. Firstly, the paper describes the phenomenon of short-term employment and its harms to private enterprises. Secondly, employs a game theory model to explain the cooperation incentive of long-term employment. Finally, draws a conclusion that long-term employment system is good for both employer and employee, and private enterprises should construct the long-term employment system for sustainable development of enterprises.