IDEAS home Printed from
   My bibliography  Save this article

Labor-use efficiency and employment elasticity in Chinese manufacturing


  • Subal Kumbhakar
  • Rui Zhang


The paper analyzes labor-use efficiency and employment elasticity in China’s manufacturing sector by applying a stochastic input distance function to the panel data of twenty-eight Chinese manufacturing industries relative to 1999-2008. The outcome is a labor-use efficiency rate ranging from 32.9% to 100% with a mean value of 85.5%, in addition to efficiency gains over time. Employment elasticity was found to vary extensively across industries. Breaking down the employment rate of change into various components, such as technical change, technical efficiency change, and rate of change in inputs, etc., shows that the Chinese manufacturing industries experienced no "jobless growth" during the review period. Keywords: labor requirement function, technical inefficiency, stochastic frontier model

Suggested Citation

  • Subal Kumbhakar & Rui Zhang, 2013. "Labor-use efficiency and employment elasticity in Chinese manufacturing," ECONOMIA E POLITICA INDUSTRIALE, FrancoAngeli Editore, vol. 2013(1), pages 5-23.
  • Handle: RePEc:fan:polipo:v:html10.3280/poli2013-001001

    Download full text from publisher

    File URL:
    Download Restriction: Single articles can be downloaded buying download credits, for info:

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item


    Funzione di fabbisogno lavorativo; inefficienza tecnica; modello di frontiera stocastica;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fan:polipo:v:html10.3280/poli2013-001001. 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: (Angelo Ventriglia). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.