Technology Development and Job Creation in China
AbstractThis paper examines how Science and Technology (S&T) contribute to job creation in the Chinese manufacturing sector. The ambition of transforming China into an innovation-oriented nation and the emphasis on indigenous innovation capacity building have placed Science and Technology (S&T) high on the Chinese policy agenda. At the same time, the need for job creation is pressing, both to absorb the huge supply of underemployed people, and to enable the annual 20 million new labor market entrants to find employment. We examine the relationship between S&T and job growth in the Chinese industrial sector. S&T can be expected to have both positive and negative effects on employment. For instance, new technology might increase competitiveness and enable Chinese firms to expand their labor force. On the other hand, new technology might be labor-saving, thereby enabling Chinese firms to produce more output with fewer employees. Based on a large sample of manufacturing firms in China between 1998 and 2004, we analyze how S&T affect employment growth. Our results suggest that S&T activities have no effect on job creation.
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Bibliographic InfoPaper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 697.
Length: 39 pages
Date of creation: 07 Feb 2007
Date of revision:
Publication status: Published as Lundin, Nannan and Fredrik Sjöholm, 'Will Science and Technology Solve China's Unemployment Problem?' in Asian Economic Papers, 2010, pages 1-28.
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More information through EDIRC
China; Science and Technology; Job-Creation;
Find related papers by JEL classification:
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
- O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-02-24 (All new papers)
- NEP-CNA-2007-02-24 (China)
- NEP-INO-2007-02-24 (Innovation)
- NEP-SEA-2007-02-24 (South East Asia)
- NEP-TID-2007-02-24 (Technology & Industrial Dynamics)
- NEP-TRA-2007-02-24 (Transition Economics)
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