Enterprises' Employment Strategy and Human Capital Investment Strategy:Evidence from Zhejiang Province

摘要

This paper examines the determinants of the enterprises' employment strategy and the relationship between employment strategy and human capital investment strategy, using data from recent survey. The results reveal that enterprises offer more training resources and opportunities for employees on medium- and long-term employment contract. Employment contract is an important ingredient which affects enterprises' human capital investment on employees. There are complementary relationships between employment strategy and human capital investment strategy. The result predicts that the potential incompatibility of labor market flexibility with enterprises' human capital investment reduces human capital formation.