The effects of wage distortions on the transition:: Theory and evidence from China
AbstractBefore the reforms, the Chinese government had strong distributional objectives, which it pursued mainly by direct controls over state enterprise wage rates and hiring decisions. During the reform period, similar controls over state enterprises continued, but use of them had to re ect competition with the new nonstate sector that was mostly free from these controls. Based on these distributional considerations alone, we can explain: 1) a decline in the skills of workers in the state sector as the most able workers leave, 2) higher productivity in the nonstate sector, which consists of the most able workers, 3) accounting losses in the state sector, re ecting the transfer of tax revenue to nance higher wage payments to the unskilled, and 4) restructuring within the state sector, to reduce the distortions to relative wage rates. Many of these attributes are shared with other types of transition process.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal European Economic Review.
Volume (Year): 43 (1999)
Issue (Month): 1 (January)
Contact details of provider:
Web page: http://www.elsevier.com/locate/eer
Other versions of this item:
- Gordon, R.H. & Li, D.D., 1997. "The Effects of Wage Distortions on the Transition: Theory and Evidence from China," Papers 97-04, Michigan - Center for Research on Economic & Social Theory.
- H10 - Public Economics - - Structure and Scope of Government - - - General
- H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
- H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
- O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe
- P50 - Economic Systems - - Comparative Economic Systems - - - General
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Aghion, P. & Blanchard, O.J., 1993.
"On the Speed of Transition in Central Europe,"
93-8, Massachusetts Institute of Technology (MIT), Department of Economics.
- Roland, G., 1992.
"The Political Economy of Restructuring and Privatization in Eastern Europe,"
9218, Universite Libre de Bruxelles - C.E.M.E..
- Roland, Gerard, 1993. "The political economy of restructuring and privatization in Eastern Europe," European Economic Review, Elsevier, vol. 37(2-3), pages 533-540, April.
- Sachs, J.D. & Woo, W.T., 1994. "Structural Factors in the Economic Reforms of China, Eastern Europe and the Former Soviet Union," Papers 94-01, California Davis - Institute of Governmental Affairs.
- Philippe Aghion & Olivier Jean Blanchard, 1994. "On the Speed of Transition Central Europe," NBER Working Papers 4736, National Bureau of Economic Research, Inc.
- Jed Friedman, 2004. "Firm Ownership and Internal Labor Practices in a Transition Economy: An Exploration of Worker Skill Acquisition in Vietnam," William Davidson Institute Working Papers Series 2004-696, William Davidson Institute at the University of Michigan.
- Su, Biwei & Heshmati, Almas, 2011. "Development and Sources of Labor Productivity in Chinese Provinces," IZA Discussion Papers 6263, Institute for the Study of Labor (IZA).
- Xiao-yuan Dong & Paul Bowles, 2002. "Segmentation et discrimination dans le marché du travail émergent de l'industrie chinoise," Revue d’économie du développement, De Boeck Université, vol. 16(3), pages 73-111.
- Bai, Chong-En & Li, David Daokui & Tao, Zhigang & Wang, Yijiang, 2001.
"A Multi-Task Theory of the State Enterprise Reform,"
CEPR Discussion Papers
2781, C.E.P.R. Discussion Papers.
- Chong-En Bai & David D. Li & Zhigang Tao & Yijiang Wang, 2001. "A Multi-Task Theory of the State Enterprise Reform," William Davidson Institute Working Papers Series 367, William Davidson Institute at the University of Michigan.
- Bai, Chong-En & Li, David D. & Tao, Zhigang & Wang, Yijiang, 2000. "A Multitask Theory of State Enterprise Reform," Journal of Comparative Economics, Elsevier, vol. 28(4), pages 716-738, December.
- Zhong Zhao, 2005. "Migration, Labor Market Flexibility, and Wage Determination in China: A Review," Labor and Demography 0507009, EconWPA.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.