Unemployment, Inequality and Poverty in Urban China by Shi Li, Hiroshi Sato
By Shi Li, Hiroshi Sato
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Extra resources for Unemployment, Inequality and Poverty in Urban China (Routledge Studies on the Chinese Economy)
6 Conclusions The state enterprise sector in China has been widely regarded as inefficient and in need of reform. The impetus to reform has come from the declining profitability of state enterprises in the face of growing market competition, both from rural industry and internationally. The state could no longer afford the loss of tax revenue and the burden of rising subsidies. One of the problems of state-owned enterprises is their overmanning – the consequence of the long-standing policy to ensure that all urban residents were securely employed.
4 per cent. Clearly, there has been widespread implementation of the government’s policies for compulsory lay-offs from SOEs. What kinds of worker were most at risk of retrenchment? 2. 14 The model identifies a number of determinants of the probability of retrenchment; most hypothesized explanatory variables are statistically significant. 18) or the percentage of correct predictions (84 per cent), is respectable. Since most explanatory variables are dummy variables, one way of showing their quantitative importance is by reporting the predicted probabilities of the model evaluated at the means of the other explanatory variables.
It is suggested that social capital reduces friction in an underdeveloped labour market and will cause equally productive individuals to have different labour supply elasticities to a firm. Notes 1 2 3 4 5 6 In regard to ‘work-unit socialism’, see Womack (1991) and Li and Li (2000). If a person remains under low-income conditions after they have ceased to be eligible for unemployment benefits, they will be covered by the welfare system at the local level, which is the Urban Minimum Cost-of-Living Assistance Programme (chengshi jumin zuidi shenghuo baozhang zhidu).