The Costs of Worker Displacement in Urban Labor Markets of China
This paper analyzes the costs of job loss in China, using unique new data from the Rural-to-Urban Migration in China (RUMIC) data set for the year 2009. We investigate conventional labor market outcomes upon displacement like the length of unemployment spells, hours worked and monthly earnings. We also analyze whether displaced workers are more likely to be in informal employment relationships or self-employed or less happy than their non-displaced counterparts. We also look at health and psychic costs as additional outcomes. Displaced migrant workers do not encounter losses in terms of longer unemployment spells or wage penalties, while urban displaced workers incur very large costs in terms of these two outcomes. These results point to segmented urban labor markets in China. All displaced workers have an increased likelihood of being informal, while only migrants among the displaced experience a lowered incidence of self-employment. Also, health costs and psychic costs can be linked to displacement although these costs are not prevalent in a uniform fashion. Stratification of the data by gender, level of development and ownership seems important as it shows substantial heterogeneity of the costs of job loss across these dimensions.
|Date of creation:||Apr 2013|
|Date of revision:|
|Contact details of provider:|| Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany|
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
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.:
- Dong, Xiao-yuan & Xu, Lixin Colin, 2009. "Labor restructuring in China: Toward a functioning labor market," Journal of Comparative Economics, Elsevier, vol. 37(2), pages 287-305, June.
- Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097 Elsevier.
- Hartmut Lehmann & Norberto Pignatti & Jonathan Wadsworth, 2005.
"The Incidence and Cost of Job Loss in the Ukrainian Labor Market,"
CERT Discussion Papers
0504, Centre for Economic Reform and Transformation, Heriot Watt University.
- Lehmann, Hartmut & Pignatti, Norberto & Wadsworth, Jonathan, 2006. "The incidence and cost of job loss in the Ukrainian labor market," Journal of Comparative Economics, Elsevier, vol. 34(2), pages 248-271, June.
- H. Lehmann & N. Pignatti & J. Wadsworth, 2005. "The Incidence and Cost of Job Loss in the Ukrainian Labor Market," Working Papers 545, Dipartimento Scienze Economiche, Universita' di Bologna.
- Hartmut Lehmann & Norberto Pignatti & Jonathan Wadsworth, 2005. "The Incidence and Cost of Job Loss in the Ukrainian Labor Market," Upjohn Working Papers and Journal Articles 05-122, W.E. Upjohn Institute for Employment Research.
- Lehmann, Hartmut & Pignatti, Norberto & Wadsworth, Jonathan, 2005. "The Incidence and Cost of Job Loss in the Ukrainian Labor Market," IZA Discussion Papers 1770, Institute for the Study of Labor (IZA).
- Knight, John & Yueh, Linda, 2004.
"Job mobility of residents and migrants in urban China,"
Journal of Comparative Economics,
Elsevier, vol. 32(4), pages 637-660, December.
- John Knight & Linda Yueh & Linda Y. Yueh, 2003. "Job Mobility of Residents and Migrants in Urban China," Economics Series Working Papers 163, University of Oxford, Department of Economics.
- Kornai, Janos, 1992. "The Socialist System: The Political Economy of Communism," OUP Catalogue, Oxford University Press, number 9780198287766.
- Peter F. Orazem & Milan Vodopivec & Ruth Wu, 2005.
"Worker displacement during the transition: Experience from Slovenia,"
The Economics of Transition,
The European Bank for Reconstruction and Development, vol. 13(2), pages 311-340, 04.
- Orazem, Peter F. & Vodopivec, Milan & Wu, Ruth, 2004. "Worker Displacement during the Transition: Experience from Slovenia," IZA Discussion Papers 1297, Institute for the Study of Labor (IZA).
- Orazem, Peter & Vodopivec, Milan & Wu, Ruth, 1995. "Worker displacement during the transition : experience from Slovenia," Policy Research Working Paper Series 1449, The World Bank.
- Orazem, Peter & Vodopivec, Milan & Wu, Ruth, 2004. "Worker Displacement During The Transition: Experience From Slovenia," Staff General Research Papers 12032, Iowa State University, Department of Economics.
- Hartmut Lehmann & Alexander Muravyev & Tiziano Razzolini & Anzelika Zaiceva, 2011.
"The Wage and Non-wage Costs of Displacement: Evidence from Russia,"
Center for Economic Research (RECent)
060, University of Modena and Reggio E., Dept. of Economics "Marco Biagi".
- H. Lehmann & A. Muravyev & T. Razzolini & A. Zaiceva, 2011. "The Wage and Non-wage Costs of Displacement: Evidence from Russia," Working Papers wp734, Dipartimento Scienze Economiche, Universita' di Bologna.
- Alexander Hijzen & Richard Upward & Peter W. Wright, 2010. "The Income Losses of Displaced Workers," Journal of Human Resources, University of Wisconsin Press, vol. 45(1).
- Liu, Hong & Zhao, Zhong, 2011.
"Parental Job Loss and Children’s Health: Ten Years after the Massive Layoff of the SOEs’ Workers in China,"
IZA Discussion Papers
5846, Institute for the Study of Labor (IZA).
- Liu, Hong & Zhao, Zhong, 2014. "Parental job loss and children's health: Ten years after the massive layoff of the SOEs' workers in China," China Economic Review, Elsevier, vol. 31(C), pages 303-319.
- Hartmut Lehmann & Alexander Muravyev & Norberto Pignatti & Anzelika Zaiceva, 2010. "Worker Displacement in Russia and Ukraine: A Comparative Analysis Using Micro Data," ESCIRRU Working Papers 24, DIW Berlin, German Institute for Economic Research.
- James J. Heckman & Jeffrey A. Smith, 1995. "Assessing the Case for Social Experiments," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 85-110, Spring.
- Simon Appleton & John Knight & Lina Song & Qingjie Xia, 2004. "Contrasting paradigms: segmentation and competitiveness in the formation of the chinese labour market," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 2(3), pages 185-205.
- Appleton, Simon & Knight, John & Song, Lina & Xia, Qingjie, 2002. "Labor retrenchment in China: Determinants and consequences," China Economic Review, Elsevier, vol. 13(2-3), pages 252-275.
- Lindo, Jason M., 2010.
"Parental Job Loss and Infant Health,"
IZA Discussion Papers
5213, Institute for the Study of Labor (IZA).
- Steven J. Davis & Till Von Wachter, 2011.
"Recessions and the Costs of Job Loss,"
2011-009, Becker Friedman Institute for Research In Economics.
- Lehmann, Hartmut & Philips, Kaia & Wadsworth, Jonathan, 2005. "The incidence and cost of job loss in a transition economy: displaced workers in Estonia, 1989 to 1999," Journal of Comparative Economics, Elsevier, vol. 33(1), pages 59-87, March.
- Gordon Betcherman & Niels-Hugo Blunch, 2008. "The limited job prospects of displaced workers: evidence from two cities in China," Economic Change and Restructuring, Springer, vol. 41(3), pages 187-207, September.
- Daniel Sullivan & Till von Wachter, 2009. "Job Displacement and Mortality: An Analysis Using Administrative Data," The Quarterly Journal of Economics, Oxford University Press, vol. 124(3), pages 1265-1306.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp7327. 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: (Mark Fallak)
If references are entirely missing, you can add them using this form.