Wage Reforms & Work Effort in Chinese State Enterprises
Two types of wage reform are analyzed in this study-- bonuses, which were originally paid to workers on an individualized basis out of a fixed enterprise fund, and profit-sharing, which linked worker wages in a more egalitarian fashion to team or enterprise performance. We test for the effectiveness of these reforms in stimulating work effort using a sample of 335 large state industrial enterprises, and conclude that the reforms were indeed successful.
Year of publication: |
1993
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Authors: | Binsheng, Li ; Wiemer, Calla |
Institutions: | Department of Economics, University of Hawaii-Manoa |
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