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

Hu, Yifan ; Opper, Sonja LU and Wong, Sonia M. L. (2006) In China Economic Review 17(3). p.281-299
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. (c) 2006 Elsevier Inc. All... (More)
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. (c) 2006 Elsevier Inc. All rights reserved. (Less)
Please use this url to cite or link to this publication:
author
; and
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
labor restructuring, political control, state owned enterprises
in
China Economic Review
volume
17
issue
3
pages
281 - 299
publisher
Elsevier
external identifiers
  • wos:000240487900005
  • scopus:33747199569
ISSN
1043-951X
DOI
10.1016/j.chieco.2006.04.004
language
English
LU publication?
yes
id
0d05fbb4-6776-4d37-818c-3e22284b299d (old id 686111)
date added to LUP
2016-04-01 15:45:13
date last changed
2021-08-25 04:16:09
@article{0d05fbb4-6776-4d37-818c-3e22284b299d,
  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. (c) 2006 Elsevier Inc. All rights reserved.},
  author       = {Hu, Yifan and Opper, Sonja and Wong, Sonia M. L.},
  issn         = {1043-951X},
  language     = {eng},
  number       = {3},
  pages        = {281--299},
  publisher    = {Elsevier},
  series       = {China Economic Review},
  title        = {Political economy of labor retrenchment: Evidence based on China's state-owned enterprises},
  url          = {http://dx.doi.org/10.1016/j.chieco.2006.04.004},
  doi          = {10.1016/j.chieco.2006.04.004},
  volume       = {17},
  year         = {2006},
}