The challenge to china’s enterprises from increasing labor costs
The product quality perspective
Bibliographic Data
| ID | 12918068 |
|---|---|
| Authors | Dandan Li (0000-0002-5735-4681), Ting Tang (0000-0002-2867-9241), Dezhuang Hu (0000-0002-2514-855X), Feifei Song (0000-0002-8866-1270), Lianfa Luo (0000-0003-0630-3435, corresponding author) |
| Year | 2017 |
| Volume | 10 |
| Issue | 1 |
| Pages | 18-33 |
| Publication date | 2017-01-02 |
| Open Access | No |
| Type | ARTICLE |
| Venue | China Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 1753-8963 • E-ISSN: 1753-8971 |
| Publisher | Routledge (PUBLISHER • GB) |
| DOI | 10.1080/17538963.2016.1274003 |
| OpenAlex | W2591598208 |
| Language | EN |
| Citations received | 1 |
| References cited | 11 |
Using China Employer–Employee Survey data, this paper investigates the possible heterogeneous results of increasing labor costs of different firms. The paper finds that, unskilled labors have a higher wage growth rate than the skilled labor. Firms with higher product quality employ more skilled labor, and thus are less affected by the increasing labor costs. On the other hand, firms with higher product quality have less elastic demand, which makes it possible for them to increase their prices without demand decreasing. The conclusions are well supported by the data. Therefore, we should treat the challenge of increasing labor cost in a new way. The real challenge of increasing labor cost is greater for low-quality firms. The empirical results suggest that some of the low-quality firms should upgrade their quality to a higher level to offset their labor cost increase.Abbreviations: CEES: China Employer-Employee Survey LP: Labor productivity LTP: Lewis turing point TFP: Total factor productivity
Business · China · Economic growth · Economics · Industrial organization · Labor cost · Labor demand · Labour economics · Microeconomics · Panel data · Product (mathematics · Productivity · Quality (philosophy · Search cost · Survey data collection · Total factor productivity · Wage · Economic Growth and Productivity · Fiscal Policy and Economic Growth · Global trade and economics
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| Citations per year | 0.2 |
|---|---|
| Citation span | 2021 - 2021 (1) |
| Highly cited | No |