Dundee Discussion Papers in Economics 220: China's new labour contract law: no harm to employment?

TY - UNPB

T1 - Dundee Discussion Papers in Economics 220

T2 - China's new labour contract law: no harm to employment?

AU - Chen, Yu-Fu

AU - Funke, Michael

N1 - This paper was also published by Elsevier in China Economic Review, Vol. 20 (3), pp. 558-572

PY - 2008

Y1 - 2008

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.

KW - China

KW - Labour contract law

KW - Real options

KW - Employment

M3 - Discussion paper

T3 - Dundee Discussion Papers in Economics

BT - Dundee Discussion Papers in Economics 220

PB - University of Dundee

ER -