New Labor Law Makes Firms Cautious to Hire, Fire

Caifeng, Liu

Abstract

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New Labor Law Makes Firms Cautious to Hire, Fire

Liu Caifeng

Central University of Finance and Economics (CUFE)

March 8, 2009

China Economist, Vol. 4, No. 2, 2009

Abstract:
The Law of the People’s Republic of China on Employment Contracts has stoked wide concern across China. One of the focuses of debate is on termination costs. Utilizing an enterprise attitude survey, this article discusses the impact of the law on termination costs and employment behavior of China’s enterprises. The research shows that the law has different impacts on enterprises of varied ownerships and scales. The law, while giving rise to higher termination costs for enterprises, urges them to take diversified measures to adjust their human resources.

Number of Pages in PDF File: 11

Keywords: Labor Contract Law, termination cost, employment behavior

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Date posted: February 1, 2010

Suggested Citation

Caifeng, Liu, New Labor Law Makes Firms Cautious to Hire, Fire (March 8, 2009). China Economist, Vol. 4, No. 2, 2009. Available at SSRN: http://ssrn.com/abstract=1544208

Contact Information

Liu Caifeng (Contact Author)

Central University of Finance and Economics (CUFE)

39 South College Road
Haidian District
Beijing, 100081
China