| ID | 119209 |
| Title Proper | Labor market matching and unemployment in urban China |
| Language | ENG |
| Author | Liu, Yang |
| Publication | 2013. |
| Summary / Abstract (Note) | In the traditional labor supply-demand approach, unemployment usually results from a lack of labor demand or excess of labor supply. However, in urban China, unemployment coexists with a conflicting phenomenon, shortage of workers in firms. In this study, we employ a novel approach to tackle this issue, search and matching theory, the empirical study of which has not drawn much attention in China. Our multiple model consisted of job-worker matching, job creation and destruction, rural-urban immigration and on-the-job search, and unemployment changes in China. We used non-linear estimation and the three-stage least squares analysis in this study. We found that matching efficiency declined greatly during the 1996-2008 period. The econometric model and simulation results indicated four key factors that led to changes in China's unemployment level: matching efficiency, job destruction, productivity growth, and job-search services. Finally, by using our econometric model, we identified the reasons for the shifts in the Beveridge curve. |
| `In' analytical Note | China Economic Review Vol. 24, No.1; Mar 2013: p.108-128 |
| Journal Source | China Economic Review Vol. 24, No.1; Mar 2013: p.108-128 |
| Key Words | Unemployment ; Search Theory ; Vacancies ; Matching Efficiency ; Econometric Models |