Economic transition and private-sector labor demand
Subtitle: evidence from urban China
By: Lakshmi Iyer, Xin Meng, Nancy Qian, Xiaoxue Zhao
Contributors: Meng, Xin, author; Qian, Nancy, author; Zhao, Xiaoxue, author; Harvard Business School
Series: Working paper / Harvard Business School -- 14-047; Working paper (Harvard Business School) -- 14-047
Publisher: Harvard Business School
Published: 2013
Place of publication: Boston
Language: eng
Number of pages: 50
Description: This paper studies the policy determinants of economic transition and estimates the demand for labor in the infant private sector in urban China. We show that a reform that untied access to housing in urban areas from working for the state sector accounts for more than a quarter of the overall increase in labor supply to the private sector during 1986-2005. Using the reform to instrument for private-sector labor supply, we find that private-sector labor demand is very elastic. We provide suggestive evidence that the reform equalized wages across sectors and reduced private-sector rents.
Notes: "December 2013"--Publisher's Web site.

Includes bibliographical references (pages 34-37).