Economic Transition and Private-Sector Labor Demand: Evidence from Urban China
AbstractThis paper studies the policy determinants of economic transition and estimates the demand for labor in the infant private sector in urban China. We show that a reform that untied access to housing in urban areas from working for the state sector accounts for more than a quarter of the overall increase in labor supply to the private sector during 1986-2005. Using the reform to instrument for private-sector labor supply, we find that private-sector labor demand is very elastic. We provide suggestive evidence that the reform equalized wages across sectors and reduced private-sector rents.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 19733.
Date of creation: Dec 2013
Date of revision:
Note: DEV LS
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Other versions of this item:
- Lakshmi Iyer & Xin Meng & Nancy Qian & Xiaoxue Zhao, 2013. "Economic Transition and Private-Sector Labor Demand: Evidence from Urban China," Harvard Business School Working Papers 14-047, Harvard Business School.
- J2 - Labor and Demographic Economics - - Demand and Supply of Labor
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- P2 - Economic Systems - - Socialist Systems and Transition Economies
- P3 - Economic Systems - - Socialist Institutions and Their Transitions
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-12-15 (All new papers)
- NEP-CNA-2013-12-15 (China)
- NEP-LAB-2013-12-15 (Labour Economics)
- NEP-LMA-2013-12-15 (Labor Markets - Supply, Demand, & Wages)
- NEP-TRA-2013-12-15 (Transition Economics)
- NEP-URE-2013-12-15 (Urban & Real Estate Economics)
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