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On the Emergence of Labour Redundancy in China's State Industry: Findings from a 1980-1994 Data Panel

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  • Xiao-yuan Dong

    (University of Winnipeg)

  • Louis Putterman

    (Brown University)

Abstract

The need to lay off redundant employees emerged as an important policy issue in urban China in the 1990s. The degree of over-manning can be estimated by comparing estimates of the marginal product of labor with estimates of the full wage, including bonuses, subsidies, and non-cash benefits. We present estimates from a panel of 752 industrial SOEs for the years 1980-94. These estimates show a rising trend of redundancy with substantial differences among industries. They confirm both out earlier finding that over-manning was not general in the pre-reform era, and the prevailing view that it was a severe problem in the 1990s. Comparative Economic Studies (2001) 43, 111–128. doi:10.1057/ces.2001.10

Suggested Citation

  • Xiao-yuan Dong & Louis Putterman, 2001. "On the Emergence of Labour Redundancy in China's State Industry: Findings from a 1980-1994 Data Panel," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 43(2), pages 111-128, July.
    • Handle: RePEc:pal:compes:v:43:y:2001:i:2:p:111-128
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    Cited by:

    1. Wei Wei & Jianmin Tang, 2019. "Ownership transformation, firm performance and manufacturing growth in China," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 27(2), pages 475-496, February.
    2. Frazier, Mark W., 2006. "State-sector shrinkage and workforce reduction in China," European Journal of Political Economy, Elsevier, vol. 22(2), pages 435-451, June.
    3. Dong, Xiao-Yuan & Putterman, Louis, 2003. "Soft budget constraints, social burdens, and labor redundancy in China's state industry," Journal of Comparative Economics, Elsevier, vol. 31(1), pages 110-133, March.
    4. Pandey, Manish & Dong, Xiao-yuan, 2009. "Manufacturing productivity in China and India: The role of institutional changes," China Economic Review, Elsevier, vol. 20(4), pages 754-766, December.
    5. Zheng, Jinghai & Liu, Xiaoxuan & Bigsten, Arne, 2003. "Efficiency, technical progress, and best practice in Chinese state enterprises (1980-1994)," Journal of Comparative Economics, Elsevier, vol. 31(1), pages 134-152, March.
    6. Liang Zheng, 2021. "The impact of state-owned enterprises on the employment growth of manufacturing in Chinese cities: Evidence from economic census microdata," Urban Studies, Urban Studies Journal Limited, vol. 58(8), pages 1655-1673, June.
    7. Mr. Waikei R Lam & Xiaoguang Liu & Mr. Alfred Schipke, 2015. "China’s Labor Market in the “New Normal”," IMF Working Papers 2015/151, International Monetary Fund.

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