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Growth and structural changes in employment in transition China

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  • Cai, Fang
  • Wang, Meiyan
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    Abstract

    By clarifying officially published statistics on labor market and employment and combining them with micro survey data, this paper tries to depict the employment growth and structural changes in rural and urban China and to break the myths believed by domestic and international scholars such as "zero growth of employment" and "unchangeable rural surplus labor pool". The paper provides exact statistics about China's labor market that previous studies fail to do, explaining how labor market develops, employment in both rural and urban areas increases and its structure diversifies, urban unemployment alleviates and number of rural surplus laborers reduces, as a result of economic growth, reform and opening-up. By examining demographic transition process in China, the paper also predicts the emerging trend of labor shortage, suggests a coming Lewisian turning point and reveals its policy implications to China's sustainable growth.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Comparative Economics.

    Volume (Year): 38 (2010)
    Issue (Month): 1 (March)
    Pages: 71-81

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    Handle: RePEc:eee:jcecon:v:38:y:2010:i:1:p:71-81

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    Web page: http://www.elsevier.com/locate/inca/622864

    Related research

    Keywords: Labor market development Employment growth Surplus labor force Lewisian turning point;

    References

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    1. Ray Barrell & Nigel Pain & Julian Morgan, 1995. "The World Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 151(1), pages 30-52, February.
    2. Williamson, Jeffrey G., 1998. "Growth, Distribution, and Demography: Some Lessons from History," Explorations in Economic History, Elsevier, vol. 35(3), pages 241-271, July.
    3. David E. Bloom & Jeffrey G. Williamson, 1997. "Demographic Transitions and Economic Miracles in Emerging Asia," NBER Working Papers 6268, National Bureau of Economic Research, Inc.
    4. Fang Cai & Meiyan Wang, 2008. "A Counterfactual Analysis on Unlimited Surplus Labor in Rural China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 16(1), pages 51-65.
    5. Ravallion, Martin & Chen, Shaohua, 1999. " When Economic Reform Is Faster Than Statistical Reform: Measuring and Explaining Income Inequality in Rural China," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(1), pages 33-56, February.
    6. Zhao, Yaohui, 1999. "Labor Migration and Earnings Differences: The Case of Rural China," Economic Development and Cultural Change, University of Chicago Press, vol. 47(4), pages 767-82, July.
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    Citations

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    Cited by:
    1. Feng Hu, 2013. "Homeownership and Subjective Wellbeing in Urban China: Does Owning a House Make You Happier?," Social Indicators Research, Springer, vol. 110(3), pages 951-971, February.
    2. Chen, Anping & Groenewold, Nicolaas, 2013. "Does investment allocation affect the inter-regional output gap in China? A time-series investigation," China Economic Review, Elsevier, vol. 26(C), pages 197-206.
    3. Gary Fields, 2012. "Challenges and policy lessons for the growth-employment-poverty nexus in developing countries," IZA Journal of Labor Policy, Springer, vol. 1(1), pages 1-24, December.
    4. Deininger, Klaus & Jin, Songqing & Xia, Fang, 2012. "Moving off the farm: Land institutions to facilitate structural transformation and agricultural productivity growth in China," Policy Research Working Paper Series 5949, The World Bank.
    5. Wang, Xinxin & Chen, Kevin & Huang, Zuhui, 2013. "The Impact of China's Demographic Transition on Economic Growth and Income Distribution: CGE Modeling with Top-Down Micro-Simulation," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151276, Agricultural and Applied Economics Association.
    6. Jan Fidrmuc & Shuo Huang, 2013. "Unemployment, Growth and Speed of Transition in China," CESifo Working Paper Series 4410, CESifo Group Munich.
    7. Yang, Qing Gong & Temple, Paul, 2012. "Reform and competitive selection in China: An analysis of firm exits," Structural Change and Economic Dynamics, Elsevier, vol. 23(3), pages 286-299.
    8. Huai Liu & Shinan Cao & Jing Deng, 2013. "Coexistence of surplus labor and the Lewis turning point in China: a unitary household decision-making model study," Journal of Economic Interaction and Coordination, Springer, vol. 8(2), pages 249-266, October.

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