Post by gfaroukh on Mar 5, 2009 1:04:19 GMT 4
China's New Labour Contract Law: No Harm to Employment?
Michael Funke
University of Hamburg - Department of Economics and Business Administration; CESifo (Center for Economic Studies and Ifo Institute for Economic Research)
Yu-Fu Chen
University of Dundee - Department of Economic Studies
December 30, 2008
BOFIT Discussion Paper No. 29/2008
Abstract:
In January 2008, China adopted a new labour contract law. This new law represents the most significant reform to the legislation on employment relations in mainland China in more than a decade. The paper provides a theoretical framework on the inter-linkages between labour market regulation, option value and the choice and timing of employment. All in all, the paper demonstrates that the Labour Contract Law in its own right will have only small impacts upon employment in the fast-growing Chinese economy. Rather, induced increasing unit labour costs represent the real issue and may reduce employment.
papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1324592_code839764.pdf?abstractid=1324592&mirid=1
Michael Funke
University of Hamburg - Department of Economics and Business Administration; CESifo (Center for Economic Studies and Ifo Institute for Economic Research)
Yu-Fu Chen
University of Dundee - Department of Economic Studies
December 30, 2008
BOFIT Discussion Paper No. 29/2008
Abstract:
In January 2008, China adopted a new labour contract law. This new law represents the most significant reform to the legislation on employment relations in mainland China in more than a decade. The paper provides a theoretical framework on the inter-linkages between labour market regulation, option value and the choice and timing of employment. All in all, the paper demonstrates that the Labour Contract Law in its own right will have only small impacts upon employment in the fast-growing Chinese economy. Rather, induced increasing unit labour costs represent the real issue and may reduce employment.
papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1324592_code839764.pdf?abstractid=1324592&mirid=1