Home

    About

    Open Access Repository

    SearchBrowse by ThemeBrowse by AuthorBrowse by TypeMost Popular Titles

    Other Resources

    Curators

    Events

    Contributing Think Tanks

    Networks

    Using Content

    FAQs

    Terms of Use

    13,800+ curated items from top Think Tanks.
    JavaScript is disabled for your browser. Some features of this site may not work without it.

    Home

    About

    Open Access Repository

    SearchBrowse by ThemeBrowse by AuthorBrowse by TypeMost Popular Titles

    Other Resources

    Curators

    Events

    Contributing Think Tanks

    Networks

    Using Content

    FAQs

    Terms of Use

    Labor Market Rigidities and Macroeconomic Performance in the PRC

    Asian Development Bank | June 2016
    Abstract
    It has often been assumed that there is a trade off between labor market flexibility and labor protection. Following the promulgation of the Labor Contract Law in 2008, employment protection in the People’s Republic of China (PRC) changed from less restrictive than the OECD average to more restrictive than any OECD economies with respect to indicators for severance pay and dismissals. However this change and its impact are not well recognized. Overall, labor market flexibility consists of two components. On the demand side, labor market flexibility affects employers’ decisions to hire workers. On the supply side, contrary to the common belief, improved workers’ protection could in fact also improve labor market flexibility through the labor supply. This is also rarely discussed, but could help the PRC reduce labor market rigidity. Based on a review of international experiences and the labor market situation in the PRC, this policy note provides policy recommendations on increasing macroeconomic efficiency through improving labor market flexibility without necessarily sacrificing protection for workers. In addition to strengthening job creation, supply-side government policies, such as those to help workers moderate income fluctuations (both cyclical and structural) and improve workers mobility, could help restore labor market flexibility in the PRC.
    Citation
    Asian Development Bank. 2016. Labor Market Rigidities and Macroeconomic Performance in the PRC. © Asian Development Bank. http://hdl.handle.net/11540/8838.
    Keywords
    Development Economics
    Regional Economic Development
    Economic Impact
    Asian Development Bank
    Development
    Macroeconomic
    Macroeconomic Analysis
    Macroeconomic Framework
    Macroeconomic Models
    Macroeconomic Performance
    Macroeconomic Planning
    Macroeconomic Policies
    Macroeconomic Reform
    Macroeconomic Stabilization
    Economies in transition
    Economic agreements
    Development indicators
    ADB
    Economic development
    Gross domestic product
    Employment
    Economic forecast
    Economic indicators
    Growth models
    Gross domestic product
    Macroeconomics
    Economic forecast
    Social condition
    Economic dependence
    Economic assistance
    Comparative economics
    Regional economics
    Economic development projects
    Open price system
    Price fixing
    Price regulation
    Consumer price indexes
    Financial crisis
    Labor economics
    Regional economics
    Turnover
    Economic survey
    Show allCollapse
    Citable URI
    http://hdl.handle.net/11540/8838
    Metadata
    Show full item record
    Thumbnail
    labor-market-rigidities.pdf (712.7Kb)
    Author
    Asian Development Bank
    Theme
    Economics
    Development
    Labor Migration
     
    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise
    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise