Labor Allocation in China: Implicit Taxation of the Heterogeneous Non-State Sector

Using China's Annual Survey of Industrial Production, we estimate the marginal revenue product of labor (MRPL) for all state-owned and above-scale non-state manufacturing firms for 2001-2004 and 2004-2007. We find that labor productivity varies systematically within industries by ownership type...

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Bibliographic Details
Published inCESifo economic studies Vol. 59; no. 4; pp. 731 - 758
Main Authors Kamal, Fariha, Lovely, Mary E
Format Journal Article
LanguageEnglish
Published Oxford Oxford University Press 01.12.2013
Subjects
China
Corporate taxes
Economic theory
Industrial economics
Labor economics
Ownership
Private enterprises
Privatization
Productivity
Public ownership
Taxation
China
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Summary:Using China's Annual Survey of Industrial Production, we estimate the marginal revenue product of labor (MRPL) for all state-owned and above-scale non-state manufacturing firms for 2001-2004 and 2004-2007. We find that labor productivity varies systematically within industries by ownership type and that non-state firms face implicit labor taxation relative to state-owned enterprises (SOEs). We also find that, in keeping with ongoing reforms of the state sector, ownership differentials fall over time, with gaps between non-state enterprises and SOEs falling by about half over time. Within the non-state sector, enterprises registered as legal persons have higher MRPL, on average, than do firms registered as collective or private enterprises. [PUB ABSTRACT]
Bibliography:ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
content type line 23
ISSN:1610-241X
1612-7501
DOI:10.1093/cesifo/ifs026