Have Chinese firms become smaller? If so, why?

Normally as an economy develops, firm sizes increase. However, as measured by the employment rate, the firm size in China declined from 2004 to 2008. In this paper, we develop a structural dynamic model with heterogeneous workers to study the relative contributions of three factors to declining firm...

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Detalles Bibliográficos
Autores principales: Yang, Qiming, Zhang, Xiaobo, Zhu, Wu
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2016
Materias:
Acceso en línea:https://hdl.handle.net/10568/147730
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author Yang, Qiming
Zhang, Xiaobo
Zhu, Wu
author_browse Yang, Qiming
Zhang, Xiaobo
Zhu, Wu
author_facet Yang, Qiming
Zhang, Xiaobo
Zhu, Wu
author_sort Yang, Qiming
collection Repository of Agricultural Research Outputs (CGSpace)
description Normally as an economy develops, firm sizes increase. However, as measured by the employment rate, the firm size in China declined from 2004 to 2008. In this paper, we develop a structural dynamic model with heterogeneous workers to study the relative contributions of three factors to declining firm size: rising real wages, implementation of minimum wages, and the introduction of a new national labor contract law. While rising wages make a sizeable contribution, we find that the new labor law plays a dominant role in solving the puzzle. In comparison, the impact of minimum wages is more muted.
format Artículo preliminar
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institution CGIAR Consortium
language Inglés
publishDate 2016
publishDateRange 2016
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spelling CGSpace1477302025-11-06T07:04:01Z Have Chinese firms become smaller? If so, why? Yang, Qiming Zhang, Xiaobo Zhu, Wu law labour legislation capacity development wages structural dynamics firm size Normally as an economy develops, firm sizes increase. However, as measured by the employment rate, the firm size in China declined from 2004 to 2008. In this paper, we develop a structural dynamic model with heterogeneous workers to study the relative contributions of three factors to declining firm size: rising real wages, implementation of minimum wages, and the introduction of a new national labor contract law. While rising wages make a sizeable contribution, we find that the new labor law plays a dominant role in solving the puzzle. In comparison, the impact of minimum wages is more muted. 2016-09-23 2024-06-21T09:23:14Z 2024-06-21T09:23:14Z Working Paper https://hdl.handle.net/10568/147730 en https://hdl.handle.net/10568/147474 https://hdl.handle.net/10568/148232 https://hdl.handle.net/10568/150881 Open Access application/pdf International Food Policy Research Institute Yang, Qiming; Zhang, Xiaobo; Zhu, Wu. 2016. Have Chinese firms become smaller? If so, why? IFPRI Discussion Paper 1558. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/147730
spellingShingle law
labour legislation
capacity development
wages
structural dynamics
firm size
Yang, Qiming
Zhang, Xiaobo
Zhu, Wu
Have Chinese firms become smaller? If so, why?
title Have Chinese firms become smaller? If so, why?
title_full Have Chinese firms become smaller? If so, why?
title_fullStr Have Chinese firms become smaller? If so, why?
title_full_unstemmed Have Chinese firms become smaller? If so, why?
title_short Have Chinese firms become smaller? If so, why?
title_sort have chinese firms become smaller if so why
topic law
labour legislation
capacity development
wages
structural dynamics
firm size
url https://hdl.handle.net/10568/147730
work_keys_str_mv AT yangqiming havechinesefirmsbecomesmallerifsowhy
AT zhangxiaobo havechinesefirmsbecomesmallerifsowhy
AT zhuwu havechinesefirmsbecomesmallerifsowhy