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The impact of the global financial crisis on off-farm employment and earnings in rural China

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  • Huang, Jikun
  • Zhi, Huayong
  • Huang, Zhurong
  • Rozelle, Scott
  • Giles, John

Abstract

This paper examines the effect of the financial crisis on off-farm employment of China's rural labor force. Using a national representative data set collected from across China, the paper finds that there was a substantial impact. By April 2009 the reduction in off-farm employment as a result of the crises was 6.8 percent of the rural labor force. Monthly earnings also declined. However, while it is estimated that 49 million were laid-off between October 2008 and April 2009, half of them were re-hired in off-farm work by April 2009. By August 2009, less than 2 percent of the rural labor force was unemployed due to the crisis. The robust recovery appears to have helped avoid instability.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 5439.

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Date of creation: 01 Oct 2010
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Handle: RePEc:wbk:wbrwps:5439

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Keywords: Labor Markets; Labor Policies; Work&Working Conditions; Tertiary Education; Crops&Crop Management Systems;

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  1. de Brauw, Alan & Giles, John, 2008. "Migrant opportunity and the educational attainment of youth in rural China," Policy Research Working Paper Series 4526, The World Bank.
  2. Richard B. Freeman, 1995. "Are Your Wages Set in Beijing?," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 15-32, Summer.
  3. de Brauw, Alan & Giles, John T., 2012. "Migrant Labor Markets and the Welfare of Rural Households in the Developing World: Evidence from China," IZA Discussion Papers 6765, Institute for the Study of Labor (IZA).
  4. Peter R. Fallon & Robert E. B. Lucas, 2002. "The Impact of Financial Crises on Labor Markets, Household Incomes, and Poverty: A Review of Evidence," World Bank Research Observer, World Bank Group, vol. 17(1), pages 21-45.
  5. Elizabeth Frankenberg & James P. Smith & Duncan Thomas, 2003. "Economic Shocks, Wealth, and Welfare," Journal of Human Resources, University of Wisconsin Press, vol. 38(2).
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Cited by:
  1. Kearney, Colm, 2012. "Emerging markets research: Trends, issues and future directions," Emerging Markets Review, Elsevier, vol. 13(2), pages 159-183.
  2. Haughton, Jonathan & Khandker, Shahidur R., 2014. "The Surprising Effects of the Great Recession: Losers and Winners in Thailand in 2008–09," World Development, Elsevier, vol. 56(C), pages 77-92.
  3. Li, Chao & Gibson, John, 2013. "Rising Regional Inequality in China: Fact or Artifact?," World Development, Elsevier, vol. 47(C), pages 16-29.
  4. Vikram Nehru, 2010. "East Asia and the Pacific Confronts the “New Normal”," World Bank Other Operational Studies 10170, The World Bank.

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