China’s Labor Market Integration and the Effect of Economic Openness

Maio Yi and Shen Zhou

No 1405, Competence Centre on Money, Trade, Finance and Development from Hochschule fuer Technik und Wirtschaft, Berlin

Abstract: This research theoretically and empirically studies China’s labor market integration and the effect of economic openness. We introduce two open parameters to the theoretical framework of Robertson (2000) to analyze the impact of economic openness on China’s labor market integration. Based on theoretical analysis, we use data from 1987 to 2006 to carry out an empirical study on China’s labor market integration measurement and the impact of economic openness on China’s labor market integration. The research indicates that the ability to return to the equilibrium wage difference between two labor markets after shock reflects a good index for measuring labor market integration. Economic openness has an obvious effect in terms of promoting China’s labor market integration by removing the obstruction of labor movement and increasing regional labor market integration. The labor market integration progress differs between regions, with the labor markets of coast areas such as NorthChina area, EastChina area and SouthChina area, which have one or two provinces as regional labor market centers, being better integrated than those of other interior areas.

Keywords: Labor market integration; Economic openness; Labor migration (search for similar items in EconPapers)
Pages: 16 pages
Date: 2014-05
References: Add references at CitEc
Citations:

Published in Berlin Working Papers on Money, Finance, Trade and Development, May 2014

Downloads: (external link)
http://finance-and-trade.htw-berlin.de/fileadmin/H ... rket_Integration.pdf First version, 2014 (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: https://EconPapers.repec.org/RePEc:mtf:wpaper:1405

Access Statistics for this paper

More papers in Competence Centre on Money, Trade, Finance and Development from Hochschule fuer Technik und Wirtschaft, Berlin
Bibliographic data for series maintained by Prof. Dr. Sebastian Dullien ().