Labor supply, risk aversion and economic refrom in China

Resumo

Economic reform in China has created a small, but fast-growing private sector that has spurred rapid productivity growth. Growth of the private sector is predicated upon continued labor movements away from state-run industries and into private firms. This paper presents a theory of labor market sectoral choice demonstrating that three factors determine private sector labor supply-the difference in wages between the state and private sectors, private sector wage risk and risk aversion. Estimation of the model using survey data provides strong support for the theory. We find that the riskiness of private sector earnings has a greater effect in discouraging workers from taking jobs in private firms than the wage premi um has in attracting workers.

Ficha do documento

Tipo

Estudo

Ano

1998

Instituição

Escola de Pós-Graduação em Economia da FGV

Fonte

Repositório da FGV

Idioma

Inglês

Acesso

Não informado

Identificador

oai:repositorio.fgv.br:10438/12367

Temas

EconomiaDesenvolvimento Econômico

Palavras-chave

Labor marketChinaPrivate sectorRisk aversionEconomic developmentTransitional economiesEconomiaMercado de trabalho - China