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Economic transition and private-sector labor: Evidence from urban China

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  • Iyer, Lakshmi
  • Meng, Xin
  • Qian, Nancy
  • Zhao, Xiaoxue

Abstract

This paper studies the transition of labor from the state sector to the infant private sector in urban China. We examine the impact of the first wave of housing reforms, which untied access to housing in urban areas from working for the state sector. We find that the reform significantly increased private housing ownership and private-sector employment, and reduced private-sector wages. The housing reform had no effect on unemployment or self-employment.

Suggested Citation

  • Iyer, Lakshmi & Meng, Xin & Qian, Nancy & Zhao, Xiaoxue, 2019. "Economic transition and private-sector labor: Evidence from urban China," Journal of Comparative Economics, Elsevier, vol. 47(3), pages 579-600.
    • Handle: RePEc:eee:jcecon:v:47:y:2019:i:3:p:579-600
    DOI: 10.1016/j.jce.2019.04.003
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    Cited by:

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    2. Xiaoxue Li & Liu Tian & Jing Xu, 2020. "Missing social security contributions: the role of contribution rate and corporate income tax rate," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 27(6), pages 1453-1484, December.

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    More about this item

    Keywords

    Economic transition; Structural change; Labor mobility; Housing reform; China;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies
    • P26 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Property Rights
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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