China's Reform of State-Owned Enterprises and Their Speed of Employment Adjustment

Yoshihiro Hashiguchi

No 10, GSICS Working Paper Series from Graduate School of International Cooperation Studies, Kobe University

Abstract: China's State-Owned Enterprises (SOEs), known to suffer from an over-manning problem, have decreased their number of employees recently. Did China's reform begin to take effect and SOEs speed up their employment adjustment? According to a generalized method of moments estimate using panel data of China's provinces from 1992 to 2002, their speed of employment adjustment did not change significantly. It seems that the employment decrease was due mainly to a decrease in the number of SOEs and that SOEs themselves were not successful in reducing their redundant labor force.

Pages: 13 pages
Date: 2006-10
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