The authors examine two questions What are effective policies for gradually transitioning labor into the private sector What is the adaptability of labor demand in the new private sector during economic transition Data from urban China and show that delinking housing nefits from state sector employment accounts for more than a quarter of the overall increase in labor supply.
To the private sector during
Furthermore increasing the private sector labor supply by percent ruces wages by . to . percent. These results have several implications First employer provid housing nefits contribute to ruc labor mobility across sectors a phenomenon call job lock similar patterns have en document for employer provid health nefits in the Unit States . Second and more Philippines Telegram Number Data importantly the private sector even in its infancy can absorb a significant amount of labor without large wage declines. However the project magnitudes of labor movement into the Chinese private sector are so large that they still imply drastic private sector wage ructions if capital and technology movements remain at the same rate as in these data.
Thus to minimize wage ructions
Chinese policy makers may want to consider policies that increase the availability of other factors of production into the private sector such as greater capital availability or adoption of newer technologies to raise labor productivity. Key concepts include Mexico WhatsApp Numbers List China makes an excellent case for study in part cause in contrast to Eastern Europe variation in the timing of economic reforms across provinces and cities. Using the stagger timing of urban housing reform in China the authors show that delinking housing nefits from state sector employment accounts for more than a quarter of the overall increase in labor supply to the private sector during.
