Labor Regulation and Enterprise Employment in China [electronic resource] / Albert Park.
Material type:
TextSeries: Other papers | World Bank e-LibraryPublication details: Washington, D.C. : The World Bank, 2012Subject(s): Accounting | Corporations | Economics | Employment | Employment Protection Legislation | Finance and Financial Sector Development | Health Insurance | Household Surveys | Job Creation | Labor Costs | Labor Markets | Labor Policies | Labor Standards | Migrant Workers | Severance Pay | Social Protections and Labor | State-Owned Enterprises | Trade Liberalization | Unemployment | WagesOnline resources: Click here to access online Abstract: Using data from a national survey of Chinese manufacturing firms conducted in 2009, the authors analyze the impact of implementation of China's 2008 labor contract law on the employment of production workers. The authors found that cities with lax prior enforcement of labor regulations experienced a greater increase in enforcement after 2008 and slower employment growth, and that this finding is robust to inclusion of a rich set of city-level controls and the use of alternative measures of enforcement effort. Although firms affected by the global economic crisis did not report less strict enforcement of the new law, there is evidence that their employment adjustment was less sensitive to enforcement of labor regulations than firms not affected by the crisis.
Using data from a national survey of Chinese manufacturing firms conducted in 2009, the authors analyze the impact of implementation of China's 2008 labor contract law on the employment of production workers. The authors found that cities with lax prior enforcement of labor regulations experienced a greater increase in enforcement after 2008 and slower employment growth, and that this finding is robust to inclusion of a rich set of city-level controls and the use of alternative measures of enforcement effort. Although firms affected by the global economic crisis did not report less strict enforcement of the new law, there is evidence that their employment adjustment was less sensitive to enforcement of labor regulations than firms not affected by the crisis.
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