Economic Transition and Private-Sector Labor Demand: Evidence from Urban China / Lakshmi Iyer, Xin Meng, Nancy Qian, Xiaoxue Zhao.

Format:

Book

Author/Creator:

Iyer, Lakshmi.

Contributor:

National Bureau of Economic Research.

Meng, Xin.

Qian, Nancy.

Zhao, Xiaoxue.

Series:

Working Paper Series (National Bureau of Economic Research) no. w19733.

NBER working paper series no. w19733

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Economic Transition and Private-Sector Labor Demand

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2013.

Summary:

This paper studies the policy determinants of economic transition and estimates the demand for labor in the infant private sector in urban China. We show that a reform that untied access to housing in urban areas from working for the state sector accounts for more than a quarter of the overall increase in labor supply to the private sector during 1986-2005. Using the reform to instrument for private-sector labor supply, we find that private-sector labor demand is very elastic. We provide suggestive evidence that the reform equalized wages across sectors and reduced private-sector rents.

Notes:

Print version record

December 2013.