Linda Yueh
- Published in print:
- 2013
- Published Online:
- May 2013
- ISBN:
- 9780199205783
- eISBN:
- 9780191752018
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199205783.003.0004
- Subject:
- Economics and Finance, South and East Asia
One of the key drivers of economic growth in China will be to continue with labour market reforms to improve the level of human capital that can generate sustained productivity improvements. The ...
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One of the key drivers of economic growth in China will be to continue with labour market reforms to improve the level of human capital that can generate sustained productivity improvements. The development of the labour market has been one of the most wide-ranging reforms for China. In less than thirty years, its employment system was transformed from the ‘iron rice bowl’ to a more competitive one. These reforms have been instrumental in raising labour productivity and therefore drive endogenous economic growth, where efficiency improvements are wrought from improving and better rewarding human capital; that is, skills, education, etc. More reforms are needed, especially as China’s labour market is still characterized by numerous inefficiencies such as migrant employment. It is critically important as China’s growth must increasingly rely on productivity than factor accumulation, making human capital investment a crucial driver of endogenous growth.Less
One of the key drivers of economic growth in China will be to continue with labour market reforms to improve the level of human capital that can generate sustained productivity improvements. The development of the labour market has been one of the most wide-ranging reforms for China. In less than thirty years, its employment system was transformed from the ‘iron rice bowl’ to a more competitive one. These reforms have been instrumental in raising labour productivity and therefore drive endogenous economic growth, where efficiency improvements are wrought from improving and better rewarding human capital; that is, skills, education, etc. More reforms are needed, especially as China’s labour market is still characterized by numerous inefficiencies such as migrant employment. It is critically important as China’s growth must increasingly rely on productivity than factor accumulation, making human capital investment a crucial driver of endogenous growth.
