Political economy of labor retrenchment : evidence based on China's state-owned enterprises

Yifan HU; Sonja OPPER; Man Lai, Sonia WONG

doi:10.1016/j.chieco.2006.04.004

Political economy of labor retrenchment : evidence based on China's state-owned enterprises

Yifan HU, Sonja OPPER, Man Lai, Sonia WONG

Research output: Journal Publications › Journal Article (refereed) › peer-review

8 Citations (Scopus)

Abstract

This study examines the determinants behind the restructuring of China's SOEs in the late 1990s. We have reached two major findings. First, we find that the degree of labor retrenchment is negatively related to enterprise performance, suggesting that poor performance is a major force driving labor restructuring. Second, we offer evidence that decisions on labor retrenchment in traditional SOEs are related to the local government's fiscal position and to local reemployment conditions for laid-off workers. In contrast, labor decisions in corporatized SOEs are not related to these two variables. Our results suggest that corporatized SOEs with partial private ownership may enjoy higher autonomy in labor decisions.

Original language	English
Pages (from-to)	281-299
Number of pages	19
Journal	China Economic Review
Volume	17
Issue number	3
DOIs	https://doi.org/10.1016/j.chieco.2006.04.004
Publication status	Published - 1 Jan 2006
Externally published	Yes

Bibliographical note

Paper presented at the Summer Conference of the Chinese-Economists-Society on Technoloyg, Human Capital and Economic Development, Jul 30-31, 2004, Atlanta, Georgia.

Keywords

Labor restructuring
Political control
State owned enterprises

Access to Document

10.1016/j.chieco.2006.04.004

Cite this

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title = "Political economy of labor retrenchment : evidence based on China's state-owned enterprises",

abstract = "This study examines the determinants behind the restructuring of China's SOEs in the late 1990s. We have reached two major findings. First, we find that the degree of labor retrenchment is negatively related to enterprise performance, suggesting that poor performance is a major force driving labor restructuring. Second, we offer evidence that decisions on labor retrenchment in traditional SOEs are related to the local government's fiscal position and to local reemployment conditions for laid-off workers. In contrast, labor decisions in corporatized SOEs are not related to these two variables. Our results suggest that corporatized SOEs with partial private ownership may enjoy higher autonomy in labor decisions.",

keywords = "Labor restructuring, Political control, State owned enterprises",

author = "Yifan HU and Sonja OPPER and WONG, {Man Lai, Sonia}",

note = "Paper presented at the Summer Conference of the Chinese-Economists-Society on Technoloyg, Human Capital and Economic Development, Jul 30-31, 2004, Atlanta, Georgia.",

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T1 - Political economy of labor retrenchment : evidence based on China's state-owned enterprises

AU - HU, Yifan

AU - OPPER, Sonja

AU - WONG, Man Lai, Sonia

N1 - Paper presented at the Summer Conference of the Chinese-Economists-Society on Technoloyg, Human Capital and Economic Development, Jul 30-31, 2004, Atlanta, Georgia.

PY - 2006/1/1

Y1 - 2006/1/1

N2 - This study examines the determinants behind the restructuring of China's SOEs in the late 1990s. We have reached two major findings. First, we find that the degree of labor retrenchment is negatively related to enterprise performance, suggesting that poor performance is a major force driving labor restructuring. Second, we offer evidence that decisions on labor retrenchment in traditional SOEs are related to the local government's fiscal position and to local reemployment conditions for laid-off workers. In contrast, labor decisions in corporatized SOEs are not related to these two variables. Our results suggest that corporatized SOEs with partial private ownership may enjoy higher autonomy in labor decisions.

AB - This study examines the determinants behind the restructuring of China's SOEs in the late 1990s. We have reached two major findings. First, we find that the degree of labor retrenchment is negatively related to enterprise performance, suggesting that poor performance is a major force driving labor restructuring. Second, we offer evidence that decisions on labor retrenchment in traditional SOEs are related to the local government's fiscal position and to local reemployment conditions for laid-off workers. In contrast, labor decisions in corporatized SOEs are not related to these two variables. Our results suggest that corporatized SOEs with partial private ownership may enjoy higher autonomy in labor decisions.

KW - Labor restructuring

KW - Political control

KW - State owned enterprises

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DO - 10.1016/j.chieco.2006.04.004

M3 - Journal Article (refereed)

SN - 1043-951X

VL - 17

SP - 281

EP - 299

JO - China Economic Review

JF - China Economic Review

IS - 3

ER -

Political economy of labor retrenchment : evidence based on China's state-owned enterprises

Abstract

Bibliographical note

Keywords

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