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China's new Labour Contract Law: No harm to employment?

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  • Chen, Yu-Fu
  • Funke, Michael

Abstract

In January 2008, China adopted a new labour contract law. This new law represents the most significant reform to the legislation on employment relations in mainland China in more than a decade. The paper provides a theoretical framework on the inter-linkages between labour market regulation, option value and the choice and timing of employment. All in all, the paper demonstrates that the Labour Contract Law in its own right will have only small impacts upon employment in the fast-growing Chinese economy. Rather, possibly induced increasing unit labour costs may adversely affect employment.

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Bibliographic Info

Article provided by Elsevier in its journal China Economic Review.

Volume (Year): 20 (2009)
Issue (Month): 3 (September)
Pages: 558-572

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Handle: RePEc:eee:chieco:v:20:y:2009:i:3:p:558-572

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Web page: http://www.elsevier.com/locate/chieco

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Keywords: China Labour Contract Law Real options Employment;

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References

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Citations

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Cited by:
  1. Gallagher, Mary & Giles, John & Park, Albert & Wang, Meiyan, 2013. "China's 2008 labor contract law : implementation and implications for China's workers," Policy Research Working Paper Series 6542, The World Bank.
  2. Tony Fang & Caroline Gunterberg & Emma Larsson, 2010. "Sourcing in an Increasingly Expensive China: Four Swedish Cases," Journal of Business Ethics, Springer, vol. 97(1), pages 119-138, November.
  3. Richard B. Freeman & Xiaoying Li, 2013. "How Does China's New Labor Contract Law Affect Floating Workers?," NBER Working Papers 19254, National Bureau of Economic Research, Inc.

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