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Unemployment Duration and Job-Match Quality in Urban China: The Dynamic Impact of 2008 Labor Contract Law

Listed author(s):
  • You, Jing
  • Wang, Shaoyang
Registered author(s):

We assess the unemployment duration-dependent impact of the 2008 Labor Contract Law on job finding probabilities and subsequently job-match quality, including job security, wages and employer-provided social insurance. Dynamic endogeneity underlying individuals’ sequential labor market outcomes is addressed by sharp regression discontinuity and correlated individual unobservables settling into non-parametric joint distribution. The law protracts employment only in the short-term. After job match, the law stabilizes employment and increases wages and insurance coverage, all in the short-term with substantial differences between urban locals and migrant workers and heterogeneity in gender.

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File URL: https://mpra.ub.uni-muenchen.de/72767/1/MPRA_paper_72767.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 72767.

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Date of creation: 28 Jul 2016
Handle: RePEc:pra:mprapa:72767
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