Job Creation and Destruction in China: Evidence of Manufacturing Industry between 1998 and 2007
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| Title | Job Creation and Destruction in China: Evidence of Manufacturing Industry between 1998 and 2007
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| Author | Ma Hong, Qiao Xue, and Xu Yuan |
| Organization | School of Economics and Management, Tsinghua University |
| Email | mahong@sem.tsinghua.edu.cn；qiaoxue@sem.tsinghua.edu.cn；xuyuan@sem.tsinghua.edu.cn |
| Key Words | Job Creation; Job Destruction; China’s Manufacturing Industry |
| Abstract | China has undergone a spectacular economic growth, and it is important to learn the job dynamic patterns accompanied with this growth path. In this paper, we aim to answer this question by utilizing a firm level data (Annual Surveys of Industrial Enterprises) during the period between 1998 and 2007. We first deal with the sample selection problem and use firms’ other information to match firms among different periods. On this basis, we examine the job flow patterns and have four findings: 1) China had experienced simultaneous and significant job creation and destruction over the above period 1998-2007, with the average rate of excess job reallocation accounting for 86 percent of gross job reallocation. 2) There are considerable variations across industries: job reallocation takes place as consumer-goods industries expand while traditional industries contract. 3) There are substantial heterogeneities on job reallocation rate within narrowly defined industries, between different ownership types, sizes and ages. 4) Different from the patterns found in transition economies, between-ownership employment shift explains a higher fraction of excess job reallocation in China. Contributions made by between-industry or between-region employment shifts, however, are relatively smaller. |
| Serial Number | WP243 |
| Time | 2012-06-12 |
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