(preliminary and incomplete)
In this paper, we investigate employees' working incentives
(shirking) in various sectors and the effect of workers
satisfaction with their working environment in China. We do not have a direct measure on working performance or shirking
records. However, we argue that, employees' sick-leave behaviour can serve as a proxy for such a measure in the context of Chinese labour market in 1990s'. This is especially true in the stateowned sector. The data used for the analysis is from the 1995 Urban Household Income Survey by Chinese Acedamy of Social Sciences. We find that workers satisfied with their working environment took less sick-leaves, and the effect is stronger in non-stateowned firms. We also find that employees in the stateowned sector, non-coastal area, or small towns, where economic reforms were relatively lagged behind, took more sick-leaves.