Industry specialization, diversification, churning, and unemployment in Chinese cities
This paper studies how industry specialization, diversification, and churning affect unemployment rates in Chinese cities. Using a city level panel data set from 1997 to 2006, we find that in contrast to the evidence from developed countries, industry diversity is positively and significantly associated with unemployment rates, possibly due to the high degree of industry churning during the sample period. We also find that the specialization of construction industry and wholesale and retail trade industry can significantly decrease unemployment rate, but specializing in finance industry increases unemployment rate. Urban growth, market maturity measured by the proportion of private sector employment, and human capital can decrease unemployment rate. The effect of industry structure on unemployment instability is also discussed.
If 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.
References listed on IDEAS
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.:
- Gan, Li & Zhang, Qinghua, 2006.
"The thick market effect on local unemployment rate fluctuations,"
Journal of Econometrics,
Elsevier, vol. 133(1), pages 127-152, July.
- Qinghua Zhang & Li Gan, 2004. "The thick market effect of local unemployment rate fluctuation," Econometric Society 2004 North American Winter Meetings 179, Econometric Society.
- Li Gan & Qinghua Zhang, 2005. "The Thick Market Effect on Local Unemployment Rate Fluctuations," NBER Working Papers 11248, National Bureau of Economic Research, Inc.
- Gilles Duranton & Diego Puga, 1999.
"Diversity and Specialisation in Cities: Why, Where and When does it Matter?,"
CEP Discussion Papers
dp0433, Centre for Economic Performance, LSE.
- Gilles Duranton & Diego Puga, 2000. "Diversity and Specialisation in Cities: Why, Where and When Does it Matter?," Urban Studies, Urban Studies Journal Limited, vol. 37(3), pages 533-555, March.
- Gilles Duranton & Diego Puga, 1999. "Diversity and specialisation in cities: Why, where and when does it matter?," Working Papers dpuga-99-02, University of Toronto, Department of Economics.
- Gilles Duranton & Diego Puga, 1999. "Diversity and specialisation in cities: why, where and when does it matter?," LSE Research Online Documents on Economics 20212, London School of Economics and Political Science, LSE Library.
- Duranton, Gilles & Puga, Diego, 1999. "Diversity and Specialization in Cities: Why, Where and When Does It Matter?," CEPR Discussion Papers 2256, C.E.P.R. Discussion Papers.
- Gilles Duranton & Diego Puga, . "DIVERSITY AND SPECIALISATION IN CITIES. Why, where and when does it matter?," UFAE and IAE Working Papers 443.99, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Barkume, Anthony J., 1982. "Differentiating employment prospects by industry and returns to job search in metropolitan areas," Journal of Urban Economics, Elsevier, vol. 12(1), pages 68-84, July.
- Knight, John & Li, Shi, 2005. "Wages, firm profitability and labor market segmentation in urban China," China Economic Review, Elsevier, vol. 16(3), pages 205-228.
- Findeisen, Sebastian & Suedekum, Jens, 2007.
"Industry Churning and the Evolution of Cities: Evidence for Germany,"
IZA Discussion Papers
3180, Institute for the Study of Labor (IZA).
- Findeisen, Sebastian & Südekum, Jens, 2008. "Industry churning and the evolution of cities: Evidence for Germany," Journal of Urban Economics, Elsevier, vol. 64(2), pages 326-339, September.
- Fumitoshi Mizutani & Keizo Mizuno & Noriyoshi Nakayama, 2003.
"Industrial Diversity and Metropolitan Unemployment Rate,"
ERSA conference papers
ersa03p141, European Regional Science Association.
- Keizo Mizuno & Fumitoshi Mizutani & Noriyoshi Nakayama, 2006. "Industrial diversity and metropolitan unemployment rate," The Annals of Regional Science, Springer, vol. 40(1), pages 157-172, March.
- Gilles Duranton, 2007. "Urban Evolutions: The Fast, the Slow, and the Still," American Economic Review, American Economic Association, vol. 97(1), pages 197-221, March.
- David M. Drukker, 2003. "Testing for serial correlation in linear panel-data models," Stata Journal, StataCorp LP, vol. 3(2), pages 168-177, June.
- Simon, Curtis J, 1987. "Industrial Diversity, Vacancy Dispersion, and Unemployment," The Annals of Regional Science, Springer, vol. 21(2), pages 60-73, July.
- Li Gan & Qi Li, 2004. "Efficiency of Thin and Thick Markets," NBER Working Papers 10815, National Bureau of Economic Research, Inc.
- Liang, Qi & Teng, Jian-Zhou, 2006. "Financial development and economic growth: Evidence from China," China Economic Review, Elsevier, vol. 17(4), pages 395-411.
- Dougherty, Sean & Herd, Richard & He, Ping, 2007. "Has a private sector emerged in China's industry? Evidence from a quarter of a million Chinese firms," China Economic Review, Elsevier, vol. 18(3), pages 309-334.
- John E. Wagner & Steven C. Deller, 1998. "Measuring the Effects of Economic Diversity on Growth and Stability," Land Economics, University of Wisconsin Press, vol. 74(4), pages 541-556.
- Simon, Curtis J, 1988. "Frictional Unemployment and the Role of Industrial Diversity," The Quarterly Journal of Economics, MIT Press, vol. 103(4), pages 715-28, November.
- Arellano, Manuel & Bond, Stephen, 1991.
"Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,"
Review of Economic Studies,
Wiley Blackwell, vol. 58(2), pages 277-97, April.
- Tom Doan, . "RATS program to replicate Arellano-Bond 1991 dynamic panel," Statistical Software Components RTZ00169, Boston College Department of Economics.
- Oded Izraeli & Kevin J. Murphy, 2003. "The effect of industrial diversity on state unemployment rate and per capita income," The Annals of Regional Science, Springer, vol. 37(1), pages 1-14, 02.
- John Knight & Jinjun Xue, 2006. "How High is Urban Unemployment in China?," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 4(2), pages 91-107.
- Giles, John & Park, Albert & Zhang, Juwei, 2005. "What is China's true unemployment rate?," China Economic Review, Elsevier, vol. 16(2), pages 149-170.
- Attaran, Mohsen, 1986. "Industrial Diversity and Economic Performance in U.S. Areas," The Annals of Regional Science, Springer, vol. 20(2), pages 44-54, July.
When requesting a correction, please mention this item's handle: RePEc:eee:chieco:v:21:y:2010:i:4:p:508-520. See general information about how to correct material in RePEc.
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.