What was the Impact of Creating Better Jobs for More People in China’s Economic Transformation? What We Know and Questions for Further Investigation
The authors show that for China the movement of more people into better jobs with higher incomes formed a very important explanation for the country’s long-term success in growth and poverty reduction. China’s exporting cities created a virtuous cy...
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World Bank, Washington, DC
2021
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| Online Access: | http://documents.worldbank.org/curated/undefined/937291635233181979/What-was-the-Impact-of-Creating-Better-Jobs-for-More-People-in-China-s-Economic-Transformation-What-We-Know-and-Questions-for-Further-Investigation http://hdl.handle.net/10986/36538 |
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okr-10986-365382021-11-11T05:10:49Z What was the Impact of Creating Better Jobs for More People in China’s Economic Transformation? What We Know and Questions for Further Investigation Merotto, Dino Jiang, Hanchen LABOR PRODUCTIVITY JOB CREATION EMPLOYMENT LABOR FORCE PARTICIPATION WAGE GAP STRUCTURAL TRANSFORMATION CAPITAL DEEPENING MIGRATION LABOR SKILLS The authors show that for China the movement of more people into better jobs with higher incomes formed a very important explanation for the country’s long-term success in growth and poverty reduction. China’s exporting cities created a virtuous cycle of new wage-employment-creating investments by new businesses making new products. The rapid increase in urban labor demand drew hundreds of millions of workers from the rural “traditional” sector to the “modern” sector, providing them with more reliable waged incomes. This dramatically raised the share of waged employment in China’s economy and unleashed new middle-class demand for more income-elastic goods and services. Growth in urban wages was moderated by regulated rural to urban labor migration under the Hukou system. This raised returns to capital, which maintained business incentives to re-invest their profits in new goods and services for which new markets were opening. Production of cheaper manufactured goods for the world market was an important catalyst, but domestic demand for services in China has maintained the momentum. 2021-11-10T17:31:11Z 2021-11-10T17:31:11Z 2021-10-26 Working Paper http://documents.worldbank.org/curated/undefined/937291635233181979/What-was-the-Impact-of-Creating-Better-Jobs-for-More-People-in-China-s-Economic-Transformation-What-We-Know-and-Questions-for-Further-Investigation http://hdl.handle.net/10986/36538 English Jobs Working Paper;No. 62 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Working Paper East Asia and Pacific China |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
LABOR PRODUCTIVITY JOB CREATION EMPLOYMENT LABOR FORCE PARTICIPATION WAGE GAP STRUCTURAL TRANSFORMATION CAPITAL DEEPENING MIGRATION LABOR SKILLS |
| spellingShingle |
LABOR PRODUCTIVITY JOB CREATION EMPLOYMENT LABOR FORCE PARTICIPATION WAGE GAP STRUCTURAL TRANSFORMATION CAPITAL DEEPENING MIGRATION LABOR SKILLS Merotto, Dino Jiang, Hanchen What was the Impact of Creating Better Jobs for More People in China’s Economic Transformation? What We Know and Questions for Further Investigation |
| geographic_facet |
East Asia and Pacific China |
| relation |
Jobs Working Paper;No. 62 |
| description |
The authors show that for China the
movement of more people into better jobs with higher incomes
formed a very important explanation for the country’s
long-term success in growth and poverty reduction. China’s
exporting cities created a virtuous cycle of new
wage-employment-creating investments by new businesses
making new products. The rapid increase in urban labor
demand drew hundreds of millions of workers from the rural
“traditional” sector to the “modern” sector, providing them
with more reliable waged incomes. This dramatically raised
the share of waged employment in China’s economy and
unleashed new middle-class demand for more income-elastic
goods and services. Growth in urban wages was moderated by
regulated rural to urban labor migration under the Hukou
system. This raised returns to capital, which maintained
business incentives to re-invest their profits in new goods
and services for which new markets were opening. Production
of cheaper manufactured goods for the world market was an
important catalyst, but domestic demand for services in
China has maintained the momentum. |
| format |
Working Paper |
| author |
Merotto, Dino Jiang, Hanchen |
| author_facet |
Merotto, Dino Jiang, Hanchen |
| author_sort |
Merotto, Dino |
| title |
What was the Impact of Creating Better Jobs for More People in China’s Economic Transformation? What We Know and Questions for Further Investigation |
| title_short |
What was the Impact of Creating Better Jobs for More People in China’s Economic Transformation? What We Know and Questions for Further Investigation |
| title_full |
What was the Impact of Creating Better Jobs for More People in China’s Economic Transformation? What We Know and Questions for Further Investigation |
| title_fullStr |
What was the Impact of Creating Better Jobs for More People in China’s Economic Transformation? What We Know and Questions for Further Investigation |
| title_full_unstemmed |
What was the Impact of Creating Better Jobs for More People in China’s Economic Transformation? What We Know and Questions for Further Investigation |
| title_sort |
what was the impact of creating better jobs for more people in china’s economic transformation? what we know and questions for further investigation |
| publisher |
World Bank, Washington, DC |
| publishDate |
2021 |
| url |
http://documents.worldbank.org/curated/undefined/937291635233181979/What-was-the-Impact-of-Creating-Better-Jobs-for-More-People-in-China-s-Economic-Transformation-What-We-Know-and-Questions-for-Further-Investigation http://hdl.handle.net/10986/36538 |
| _version_ |
1764485452863111168 |