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How High is Urban Unemployment in China?

Author

Listed:
  • John Knight
  • Jinjun Xue

Abstract

Rapid economic growth and radical structural transformation pose a challenge to official statisticians as they seek to encompass new economic activities and phenomena. The accuracy of official statistics is liable to come into question. Urban unemployment in China is a good example. This paper estimates the urban unemployment rate using administrative statistics, population census data and a recent sample survey data set, and provides a critique showing in some detail how and why Chinese unemployment statistics are a minefield for the unwary and unemployment is so difficult to measure. Nevertheless, it is found that the urban unemployment rate rose rapidly over the 1990s and exceeded 11% in 1999 and 2000. The paper concludes by considering the implications of the findings for understanding unemployment, for policy, and for the collection of statistics.

Suggested Citation

  • John Knight & Jinjun Xue, 2006. "How High is Urban Unemployment in China?," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 4(2), pages 91-107.
    • Handle: RePEc:taf:jocebs:v:4:y:2006:i:2:p:91-107
    DOI: 10.1080/14765280600736833
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    References listed on IDEAS

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    1. Knight, John & Yueh, Linda, 2004. "Job mobility of residents and migrants in urban China," Journal of Comparative Economics, Elsevier, vol. 32(4), pages 637-660, December.
    2. Appleton, Simon & Knight, John & Song, Lina & Xia, Qingjie, 2002. "Labor retrenchment in China: Determinants and consequences," China Economic Review, Elsevier, vol. 13(2-3), pages 252-275.
    3. Jinjun Xue & Wei Zhong, 2003. "Unemployment, Poverty and Income Disparity in Urban China," Asian Economic Journal, East Asian Economic Association, vol. 17(4), pages 383-405, December.
    4. Kingdon, Geeta & Knight, John, 2006. "The measurement of unemployment when unemployment is high," Labour Economics, Elsevier, vol. 13(3), pages 291-315, June.
    5. Knight, John & Li, Shi, 2005. "Wages, firm profitability and labor market segmentation in urban China," China Economic Review, Elsevier, vol. 16(3), pages 205-228.
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    Cited by:

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    3. FU, Shihe & DONG, Xiaofang & CHAI, Guojun, 2010. "Industry specialization, diversification, churning, and unemployment in Chinese cities," China Economic Review, Elsevier, vol. 21(4), pages 508-520, December.
    4. Marco Guerrazzi & Ilham Ksebi, 2019. "Measuring Unemployment by Means of Official Data and Administrative Records: Empirical and Theoretical Perspectives," QUADERNI DI ECONOMIA DEL LAVORO, FrancoAngeli Editore, vol. 2019(110), pages 17-49.
    5. Mr. Leslie Lipschitz & Ms. Genevieve Verdier & Ms. Celine Rochon, 2008. "A Real Model of Transitional Growth and Competitiveness in China," IMF Working Papers 2008/099, International Monetary Fund.
    6. Bailliu, Jeannine & Han, Xinfen & Kruger, Mark & Liu, Yu-Hsien & Thanabalasingam, Sri, 2019. "Can media and text analytics provide insights into labour market conditions in China?," International Journal of Forecasting, Elsevier, vol. 35(3), pages 1118-1130.
    7. Dennis Tao Yang & Junsen Zhang & Shaojie Zhou, 2012. "Why Are Saving Rates So High in China?," NBER Chapters, in: Capitalizing China, pages 249-278, National Bureau of Economic Research, Inc.
    8. Xin Mai & Roger C. K. Chan & Chaoqun Zhan, 2019. "Which Sectors Really Matter for a Resilient Chinese Economy? A Structural Decomposition Analysis," Sustainability, MDPI, vol. 11(22), pages 1-17, November.
    9. Schucher, Günter, 2014. "A Ticking "Time Bomb"? Youth Employment Problems in China," GIGA Working Papers 258, GIGA German Institute of Global and Area Studies.
    10. Holz, Carsten A, 2013. "Chinese statistics: classification systems and data sources," MPRA Paper 43869, University Library of Munich, Germany.
    11. Lin Guo, 2017. "Income Inequality, Household Consumption And Co2 Emissions In China," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 62(02), pages 531-553, June.
    12. Liu, Qian, 2012. "Unemployment and labor force participation in urban China," China Economic Review, Elsevier, vol. 23(1), pages 18-33.
    13. repec:zbw:bofitp:2018_009 is not listed on IDEAS
    14. Chen, Ying, 2023. "Environmental regulation, local labor market, and skill heterogeneity," Regional Science and Urban Economics, Elsevier, vol. 101(C).
    15. Jeannine Bailliu & Xinfen Han & Mark Kruger & Yu-Hsien Liu & Sri Thanabalasingam, 2019. "Can media and text analytics provide insights into labour market conditions in China?," IFC Bulletins chapters, in: Bank for International Settlements (ed.), Are post-crisis statistical initiatives completed?, volume 49, Bank for International Settlements.
    16. Smyth, Russell & Mishra, Vinod & Qian, Xiaolei, 2008. "The Environment and Well-Being in Urban China," Ecological Economics, Elsevier, vol. 68(1-2), pages 547-555, December.
    17. Xin Meng & Robert G. Gregory & Guanghua Wan, 2006. "China Urban Poverty and its Contributing Factors, 1986-2000," WIDER Working Paper Series RP2006-133, World Institute for Development Economic Research (UNU-WIDER).
    18. Bagnai, Alberto, 2009. "The role of China in global external imbalances: Some further evidence," China Economic Review, Elsevier, vol. 20(3), pages 508-526, September.
    19. Smyth, Russell & Narayan, Paresh Kumar & Shi, Hongliang, 2011. "Substitution between energy and classical factor inputs in the Chinese steel sector," Applied Energy, Elsevier, vol. 88(1), pages 361-367, January.
    20. Xiaoxia Wang & Wenkai Sun, 2014. "Discrepancy between Registered and Actual Unemployment Rates in China: An Investigation in Provincial Capital Cities," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 22(4), pages 40-59, July.
    21. Robson Morgan & Fei Wang, 2019. "Well-Being in Transition: Life Satisfaction in Urban China from 2002 to 2012," Journal of Happiness Studies, Springer, vol. 20(8), pages 2609-2629, December.
    22. Easterlin, Richard A. & Morgan, Robson & Switek, Maggie & Wang, Fei, 2013. "China's Life Satisfaction, 1990-2010," IZA Discussion Papers 7196, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    JEL Classifications: C13; J21; J64; J79; O53;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J79 - Labor and Demographic Economics - - Labor Discrimination - - - Other
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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