Labor market reform and the changing structure of wage determination in China's state sector during the 1980s

Meng, Xin & Kidd, Michael P. (1997) Labor market reform and the changing structure of wage determination in China's state sector during the 1980s. Journal of Comparative Economics, 25(3), pp. 403-421.

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China's market-oriented labor market reform has been in place for about one and a half decades. This study uses individual data for 1981 and 1987 to examine the success of the first half of the reform program. Success is evaluated by examining changes in the wage setting structure in the state-owned sector over the reform period. Have the market reforms stimulated worker incentives by increasing the returns to human capital acquisition? Has the wage structure altered to more closely mimic that of a market economy? In 1987, there is evidence of a structural change in the system of wage determination, with slightly increased rates of return to human capital. However, changes in industrial wage differentials appear to play the dominant role. It is argued that this may be due to labor market reforms, in particular the introduction of the profit related bonus scheme.J. Comp. Econom.,December 1997,25(3), pp. 403–421. Australian National University, Canberra, ACT0200, Australia and University of Tasmania, Hobart, Tasmania, Australia, and University of Aberdeen, Old Aberdeen, Scotland AB24 3QY.

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ID Code: 59990
Item Type: Journal Article
Refereed: Yes
DOI: 10.1006/jcec.1997.1481
ISSN: 0147-5967
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Economics & Finance
Deposited On: 19 May 2013 22:32
Last Modified: 19 May 2013 22:32

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