Based on a survey that we designed and that covers a stratified random sample of 12,400 firms in 120 cities in China … regions and sectors. By our calculation, if China succeeds in allocating its capital more efficiently, it could reduce its …

We note the absence of prior literature on analytical structures to be used for China and other economies with … empirical literature discussing the productivity effects of Chinese SOE enterprise reform, and wider policy discussion of the …

Starting in the late 1990s, China undertook a dramatic transformation of the large number of firms under state control … productivity; (ii) the labor productivity of state-owned firms converged to that of private firms; (iii) the capital productivity … of state-owned firms remained significantly lower than that of private firms; and (iv) total factor productivity (TFP …

reallocation depends on (a) the dispersion of idiosyncratic productivity shocks faced by businesses and (b) the marginal … marginal responsiveness of employment growth to business-level productivity has weakened. The responsiveness in the post-2000 … in the 1990s. Counterfactuals show that weakening productivity responsiveness since 2000 accounts for a significant drag …

shocks. Workers do not observe firm productivity and firms do not commit to future wages, but there is on-the-job search for … specific productivity shocks. In a separating equilibrium, more productive firms signal their type by paying strictly higher … data on firm wage and labor productivity dispersion as well as the cross firm relationship between them …