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

Nancy Qian, ,, Lakshmi Iyer and Xiaoxue Zhao
Authors registered in the RePEc Author Service: Xin Meng ()

No 9794, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: 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.

Keywords: Economic transition; Labor mobility; Structural change (search for similar items in EconPapers)
JEL-codes: J23 O12 P2 P26 (search for similar items in EconPapers)
Date: 2014-01
New Economics Papers: this item is included in nep-tra and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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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 (2015)
Working Paper: Economic Transition and Private-Sector Labor Demand: Evidence from Urban China (2013)
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