China's new labour contract law: No harm to employment?

Michael Funke and Yu-Fu Chen

Quantitative Macroeconomics Working Papers from Hamburg University, Department of Economics

Abstract: In January 2008, China imposed a new labour contract law. This new law is the most significant reform to the law of employment relations in mainland China in more than a decade. The paper provides a theoretical framework on the inter-linkages between labour market regulation, option value and the choice and timing of employment. All in all, the paper demonstrates that the Labour Contract Law in it´s own right will have only small impacts upon employment in the fast-growing Chinese economy. On the contrary, induced increasing unit labour costs represent the real issue and may reduce employment.

Keywords: China; Labour Contract Law; Real Options; Employment (search for similar items in EconPapers)
JEL-codes: C61 D81 D92 J23 (search for similar items in EconPapers)
Date: 2009-09
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Citations: View citations in EconPapers (11)

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http://www.uni-hamburg.de/fachbereiche-einrichtung ... /makro/newlabour.pdf (application/pdf)

Related works:
Journal Article: China's new Labour Contract Law: No harm to employment? (2009)
Working Paper: China's New Labour Contract Law:No Harm to Employment? (2008)
Working Paper: China's new labour contract law: No harm to employment? (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:ham:qmwops:20909b

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