Unemployment Duration and Job-Match Quality in Urban China: The Dynamic Impact of 2008 Labor Contract Law

Jing You and Shaoyang Wang

MPRA Paper from University Library of Munich, Germany

Abstract: We assess the unemployment duration-dependent impact of the 2008 Labor Contract Law on job finding probabilities and subsequently job-match quality, including job security, wages and employer-provided social insurance. Dynamic endogeneity underlying individuals’ sequential labor market outcomes is addressed by sharp regression discontinuity and correlated individual unobservables settling into non-parametric joint distribution. The law protracts employment only in the short-term. After job match, the law stabilizes employment and increases wages and insurance coverage, all in the short-term with substantial differences between urban locals and migrant workers and heterogeneity in gender.

Keywords: unemployment; wage; social insurance; regression-discontinuity design; China (search for similar items in EconPapers)
JEL-codes: C41 J64 J65 O53 (search for similar items in EconPapers)
Date: 2016-07-28
New Economics Papers: this item is included in nep-cna, nep-cse, nep-ias, nep-lab and nep-tra
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Related works:
Journal Article: Unemployment duration and job-match quality in urban China: The dynamic impact of 2008 Labor Contract Law (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:72767

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