China's new labour contract law: no harm to employment?

Yu-Fu Chen, Michael Funke

    Research output: Working paperDiscussion paper

    216 Downloads (Pure)

    Abstract

    In January 2008, China imposed a new labour contract law. This new law is the most significant reform to the law of employment relations in mainland China in more than a decade. The paper provides a theoretical framework on the inter-linkages between labour market regulation, option value and the choice and timing of employment. All in all, the paper demonstrates that the Labour Contract Law in it´s own right will have only small impacts upon employment in the fast-growing Chinese economy. On the contrary, induced increasing unit labour costs represent the real issue and may reduce employment.
    Original languageEnglish
    PublisherUniversity of Dundee
    Publication statusPublished - 2008

    Publication series

    NameDundee Discussion Papers in Economics
    PublisherUniversity of Dundee
    No.220
    ISSN (Print)1473-236X

    Fingerprint

    New Labour
    China
    Law
    labor costs
    labor market
    labor
    regulation
    reform
    economy
    Values

    Keywords

    • China
    • Labour contract law
    • Real options
    • Employment

    Cite this

    Chen, Y-F., & Funke, M. (2008). China's new labour contract law: no harm to employment? (Dundee Discussion Papers in Economics; No. 220). University of Dundee.
    Chen, Yu-Fu ; Funke, Michael. / China's new labour contract law: no harm to employment?. University of Dundee, 2008. (Dundee Discussion Papers in Economics; 220).
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    title = "China's new labour contract law: no harm to employment?",
    abstract = "In January 2008, China imposed a new labour contract law. This new law is the most significant reform to the law of employment relations in mainland China in more than a decade. The paper provides a theoretical framework on the inter-linkages between labour market regulation, option value and the choice and timing of employment. All in all, the paper demonstrates that the Labour Contract Law in it´s own right will have only small impacts upon employment in the fast-growing Chinese economy. On the contrary, induced increasing unit labour costs represent the real issue and may reduce employment.",
    keywords = "China, Labour contract law, Real options, Employment",
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    Chen, Y-F & Funke, M 2008 'China's new labour contract law: no harm to employment?' Dundee Discussion Papers in Economics, no. 220, University of Dundee.

    China's new labour contract law: no harm to employment? / Chen, Yu-Fu; Funke, Michael.

    University of Dundee, 2008. (Dundee Discussion Papers in Economics; No. 220).

    Research output: Working paperDiscussion paper

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    T1 - China's new labour contract law: no harm to employment?

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    AU - Funke, Michael

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    N2 - In January 2008, China imposed a new labour contract law. This new law is the most significant reform to the law of employment relations in mainland China in more than a decade. The paper provides a theoretical framework on the inter-linkages between labour market regulation, option value and the choice and timing of employment. All in all, the paper demonstrates that the Labour Contract Law in it´s own right will have only small impacts upon employment in the fast-growing Chinese economy. On the contrary, induced increasing unit labour costs represent the real issue and may reduce employment.

    AB - In January 2008, China imposed a new labour contract law. This new law is the most significant reform to the law of employment relations in mainland China in more than a decade. The paper provides a theoretical framework on the inter-linkages between labour market regulation, option value and the choice and timing of employment. All in all, the paper demonstrates that the Labour Contract Law in it´s own right will have only small impacts upon employment in the fast-growing Chinese economy. On the contrary, induced increasing unit labour costs represent the real issue and may reduce employment.

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    KW - Labour contract law

    KW - Real options

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    Chen Y-F, Funke M. China's new labour contract law: no harm to employment? University of Dundee. 2008. (Dundee Discussion Papers in Economics; 220).