Economic Transition and Private-Sector Labor Demand: Evidence from Urban China

Lakshmi Iyer, Xin Meng () and Nancy Qian

Working Papers from eSocialSciences

Abstract: This 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.

Keywords: Economic Transition; Structural Change; Labor Mobility; China. (search for similar items in EconPapers)
Date: 2015-07
Note: Institutional Papers
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Related works:
Working Paper: Economic Transition and Private-Sector Labor Demand: Evidence from Urban China (2016)
Working Paper: Economic Transition and Private-Sector Labor Demand: Evidence from Urban China (2014)
Working Paper: Economic Transition and Private-Sector Labor Demand: Evidence from Urban China (2013)
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