A Dynamic Analysis of Overstaff in China's State-Owned Enterprises

La Trobe University, School of Business Working Paper No. A-99.03

23 Pages Posted: 28 Nov 2000

See all articles by Xiangkang Yin

Xiangkang Yin

Deakin University; Financial Research Network (FIRN)

Multiple version iconThere are 2 versions of this paper

Date Written: April 1999

Abstract

Overstaff in state-owned enterprises (SOEs) is a key and difficult issue in the Chinese economic reform. This paper models the transition process in the reform that SOE overstaff is gradually absorbed by private enterprises and the economy grows through converting redundant SOE workers into active labor force. It characterizes the steady equilibrium, where all overstaff has been completely absorbed, and the dynamic path from current state to the steady equilibrium. The optimal government strategy maximizing household utility in the transition is also discussed.

Keywords: Chinese Economy, Overstaff, State-Owned Enterprise, Dynamics

JEL Classification: E24, P31

Suggested Citation

Yin, Xiangkang, A Dynamic Analysis of Overstaff in China's State-Owned Enterprises (April 1999). La Trobe University, School of Business Working Paper No. A-99.03. Available at SSRN: https://ssrn.com/abstract=249073 or http://dx.doi.org/10.2139/ssrn.249073

Xiangkang Yin (Contact Author)

Deakin University ( email )

Melbourne, Victoria
Australia

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: http://www.firn.org.au

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