Economic Transition and Private-Sector Labor Demand: Evidence from Urban China
Published By: The Bureau for Research and Economic Analysis of D | Published Date: December, 06 , 2013This paper studies the policy determinants of economic transition and estimates the demand for labor in the infant private sector in urban China. It shows 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, it finds that private-sector labor demand is very elastic. It provides suggestive evidence that the reform equalized wages across sectors and reduced private-sector rents.
Author(s): Lakshmi Iyer, Xin Meng, Nancy Qian | Posted on: Jul 20, 2015 | Views() | Download (552)