COSTLY LABOUR ADJUSTMENT: GENERAL EQUILIBRIUM EFFECTS OF CHINA'S EMPLOYMENT REGULATIONS AND FINANCIAL REFORMS

• 成果类型: Article
• 署名作者: Cooper, Russell; Gong, Guan; Yan, Ping
• 署名单位: National Bureau of Economic Research; Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; Shanghai University of Finance & Economics; Peking University
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1111/ecoj.12528
• 发表日期: 2018
• 页码: 1879-1922
• 关键词: demand

摘要

This article studies the employment and productivity implications of new Chinese labour regulations. We estimate a general equilibrium model of costly labour adjustment from data prior to the policy to study the effects of the interventions. Increases in severance payments are particularly effective and lead to sizable private sector responses. If in place at the time, these frictions would have reduced China's annual growth rate by nearly 1 percentage point between 1998 and 2007, a period of intense privatisation. Credit market liberalisation reduces private firm size and increases private sector employment, labour reallocation, wages and output.