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The Impact of China's Millennium Labour Restructuring Program on Firm Performance and Employee Earnings

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dc.contributor.authorDong, Xiao-Yuan
dc.contributor.authorXu, Lixin Colin
dc.date.accessioned2012-03-30T07:33:58Z
dc.date.available2012-03-30T07:33:58Z
dc.date.issued2008
dc.description.abstractAround the turn of the century, China experienced perhaps the largest labour restructuring program in the world. This paper uses a new dataset of Chinese industrial enterprises to examine what leads to downsizing, and tries to understand the effects of labour downsizing on firms' technical efficiency, financial performance and employee wages. We find that downsizing is more prevalent in state-owned enterprises (SOEs), and is more likely when enterprises are older, larger and have higher excess capacity. For both SOEs and private firms, downsizing is more likely when the prices of their products drop, but private firms respond more dramatically. Moreover, downsizing has serious short-term costs in terms of total factor productivity (TFP). For mild downsizing, private firms suffer more deterioration in productivity. The distribution of surplus after downsizing is more favourable to labour in SOEs. For severe downsizing, both SOEs and private firms exhibit lower TFP growth with similar magnitudes. Our findings imply that private firms emphasize profit goals, while SOEs place a greater weight on labour protection.en
dc.identifier.citationEconomics of Transition
dc.identifier.issn09670750
dc.identifier.urihttps://hdl.handle.net/10986/5671
dc.language.isoEN
dc.relation.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/igo
dc.rights.holderWorld Bank
dc.subjectLabor Turnover
dc.subjectVacancies
dc.subjectLayoffs J630
dc.subjectFirm Performance: Size, Diversification, and Scope L250
dc.subjectSocialist Systems and Transitional Economies: Factor and Product Markets
dc.subjectIndustry Studies
dc.subjectPopulation P230
dc.subjectSocialist Enterprises and Their Transitions P310
dc.titleThe Impact of China's Millennium Labour Restructuring Program on Firm Performance and Employee Earningsen
dc.title.alternativeEconomics of Transitionen
dc.typeJournal Articleen
dc.typeArticle de journalfr
dc.typeArtículo de revistaes
dspace.entity.typePublication
okr.doctypeJournal Article
okr.externalcontentExternal Content
okr.identifier.externaldocumentum621
okr.journal.nbpages223-245
okr.language.supporteden
okr.peerreviewAcademic Peer Review
okr.region.countryChina
okr.relation.associatedurlhttp://search.ebscohost.com/login.aspx?direct=true&db=eoh&AN=0967199&site=ehost-live
okr.relation.associatedurlhttp://www.blackwellpublishing.com/journal.asp?ref=0967-0750
okr.volume16
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