Labor Supply in Urban China

Title: Labor Supply in Urban China
Format: Journal Article
Publication Date: December 2003

Using labor supply responses from 10,560 urban Chinese workers, two-stage least squares estimations identify positive compensated wage effects and negative income effects that are, for the most part, statistically significant. The gross wage effects are mostly positive but they indicate relatively low uncompensated labor supply elasticities. The compensated wage effects are much larger; these may be important in assessing the labor market consequences of reform policies that monetize non-pecuniary benefits. The significance of labor supply responses depends on individual responsibilities within the family; the effects are largest for women and non-household heads.

Ivan Allen College Contributors:
External Contributors: Jeffrey S. Zax

Li, Haizheng and Jeffrey S. Zax. "Labor Supply in Urban China." Journal of Comparative Economics 31.4 (2003): 795-817.

  • Chinese Economy
  • Labor Economics
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Related Departments:
  • School of Economics