Labor Supply in Urban China

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IZA Seminar

Place: Schaumburg-Lippe-Str. 9, 53113 Bonn

Date: 14.01.2003, 12:15 - 13:30


Presentation by 

Xiaodong Gong (NATSEM, University of Canberra)


In this paper, we analyze labor supply in urban China using discretized neo-classical labor supply model, where we take into account the unobserved heterogeneity, unobservability and measurement errors of the wage rates, and the correlation of the wage and preferences. Elasticities of labor supply are calculated. We also simulate the effect of tax policy on the labor supply. The elasticities are found to be quite small, in accordance with the fact that China in general is a labor abundant country.

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