Economics at your fingertips  

Have Chinese firms become smaller? If so, why?

Qiming Yang, Xiaobo Zhang () and Wu Zhu

No 1558, IFPRI discussion papers from International Food Policy Research Institute (IFPRI)

Abstract: Normally as an economy develops, firm sizes increase. However, as measured by the employment rate, the firm size in China declined from 2004 to 2008. In this paper, we develop a structural dynamic model with heterogeneous workers to study the relative contributions of three factors to declining firm size: rising real wages, implementation of minimum wages, and the introduction of a new national labor contract law. While rising wages make a sizeable contribution, we find that the new labor law plays a dominant role in solving the puzzle. In comparison, the impact of minimum wages is more muted.

Keywords: wages; labor law; labour legislation; law (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-cna, nep-dge and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) ... /filename/130917.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this paper

More papers in IFPRI discussion papers from International Food Policy Research Institute (IFPRI) Contact information at EDIRC.
Bibliographic data for series maintained by ().

Page updated 2021-10-21
Handle: RePEc:fpr:ifprid:1558