Financial Development, Labor Participation, and Employment in Urban China

Guifu Chen and Sizhuo Chen

Emerging Markets Finance and Trade, 2016, vol. 52, issue 3, 754-764

Abstract: This article focuses on the effect of financial development on labor participation and employment ratios in China. First, we find that the impacts of financial deepening degree on labor participation are different across regions. The coefficient for financial efficiency degree is statistically significant only in the western region. Second, we find that the coefficient for financial deepening degree is statistically significant only in the western region. Increasing financial efficiency degree decreases employment probability, with the effect being relatively less marked in the central region. However, this probability increases with financial efficiency degree increasing in the western region.

Date: 2016
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DOI: 10.1080/1540496X.2016.1116285

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