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Institutional causes for the slowing transition, unemployment and unequal distribution

Author

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  • ZHOU Tianyong

    (The Party School of the Central Committee of the Communist Party of China, Beijing 100091, China)

Abstract

Usually 65%-80% of the employment can be taken by small-and-medium-sized enterprises in a country. The more small-and-medium-sized enterprises are active in the economy, the higher proportion of the middle income classes in the population, and the lower proportion of the poor people caused by unemployment and under-employment. Therefore, without changing the policy inclination to support gigantic or large companies we cannot solve the problem of surplus on labor force, urban unemployment and gap of income distribution. Now we may face the danger of developing into the Latin-America trap . At present we should focus on institutional reform of the government and promote the development of small-and-medium-sized enterprises.

Suggested Citation

  • ZHOU Tianyong, 2007. "Institutional causes for the slowing transition, unemployment and unequal distribution," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 2(2), pages 169-186, June.
    • Handle: RePEc:fec:journl:v:2:y:2007:i:2:p:169-186
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    File URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-007-0009-x
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    More about this item

    Keywords

    small-and-medium-sized enterprises; governmental management; cost and penalty; unequal income distribution;
    All these keywords.

    JEL classification:

    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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