What caused the 'marginal-products-of-labour wage gap' in state-owned enterprises in China during the early-reform era? A reconsideration based on a case study in Henan
The marginal-products-of-labour (MPL) wage gap is studied in the early-reform Chinese economy, using the Olley-Pakes estimation technique to estimate the production function, based on micro data including different categories of labour. From this measurement of MPL-wage gaps and econometric analyses, several conclusions are drawn. First, the MPL-wage gap was anomalously large for managers in state-owned enterprises (SOEs) compared with other categories of labour. Second, the large MPL-wage gap of managers raised the average MPL-wage gap across various categories of labour, resulting in higher than the average wage MPL throughout the entire workforce, which is regarded as homogeneous. Third, the large MPL-wage gap, or, in other words, the under-employment of managers, occurred not only because the state still centrally employed and allocated labour to SOEs, but because the economy faced a labour-supply constraint of managers in early-reform China. This observation supports a modified version of the state labour-monopsony hypothesis.
Year of publication: |
2011
|
---|---|
Authors: | Yano, Go ; Shiraishi, Maho ; Mahmut, Xohrat |
Published in: |
Journal of Chinese Economic and Business Studies. - Taylor & Francis Journals, ISSN 1476-5284. - Vol. 9.2011, 3, p. 217-238
|
Publisher: |
Taylor & Francis Journals |
Subject: | marginal products of labour-wage gap | Olley-Pakes estimator | different categories of labour | labour-monopsony hypothesis | supply constraints of managers (educated workers) |
Saved in:
Online Resource
Saved in favorites
Similar items by subject
-
Yano, Go, (2011)
- More ...
Similar items by person
-
Yano, Go, (2011)
-
Trade credit in China in the early 1990s
Shiraishi, Maho, (2010)
-
Yano, Go, (2007)
- More ...