| ID | 107482 |
| Title Proper | What caused the 'marginal-products-of-labour wage gap' in state-owned enterprises in China during the early-reform era |
| Other Title Information | a reconsideration based on a case study in Henan |
| Language | ENG |
| Author | Yano, Go ; Shiraishi, Maho ; Mahmut, Xohrat |
| Publication | 2011. |
| Summary / Abstract (Note) | The marginal-products-of-labour (MPL) wage gap is studied in the early-reform Chinese economy, using the Olley-Pakes estimation technique to estimate the production function, based on micro data including different categories of labour. From this measurement of MPL-wage gaps and econometric analyses, several conclusions are drawn. First, the MPL-wage gap was anomalously large for managers in state-owned enterprises (SOEs) compared with other categories of labour. Second, the large MPL-wage gap of managers raised the average MPL-wage gap across various categories of labour, resulting in higher than the average wage MPL throughout the entire workforce, which is regarded as homogeneous. Third, the large MPL-wage gap, or, in other words, the under-employment of managers, occurred not only because the state still centrally employed and allocated labour to SOEs, but because the economy faced a labour-supply constraint of managers in early-reform China. This observation supports a modified version of the state labour-monopsony hypothesis. |
| `In' analytical Note | Journal of Chinese Economics and Business Studies Vol. 9, No. 3; Aug 2011: p217-238 |
| Journal Source | Journal of Chinese Economics and Business Studies Vol. 9, No. 3; Aug 2011: p217-238 |
| Key Words | Marginal Products of Labour-Wage Gap ; Olley-Pakes Estimator ; Different Categories of Labour ; Labour-Monopsony Hypothesis ; Supply Constraints of Managers ; Educated Workers ; Marginal Products of Labour-Wage Gap |