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on China |
| By: | Ge, Suqin (Virginia Tech); Yang, Dennis Tao (University of Virginia); Zhang, Junsen (Chinese University of Hong Kong) |
| Abstract: | Using combined data from population censuses and Urban Household Surveys, we study the effects of demographic structural changes on the rise in household saving in China. Variations in fines across provinces on unauthorized births under the one-child policy and in cohort-specific fertility influenced by the implementation of population control policies are exploited to facilitate identification. We find evidence that older households with a reduced number of adult children save more because of old-age security concerns, middle-aged households experience an increase in saving due to the lighter burden of dependent children, and younger households save more because of having fewer siblings to share the responsibility of parental care. These findings lend support to a simple economic model in which the effects of population control policies are investigated in the context of household saving decisions in China. |
| Keywords: | household saving, one-child policy, demographic structure, cohort analysis, China |
| JEL: | E21 J11 J13 |
| Date: | 2012–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7026&r=cna |
| By: | Wenya Cheng; John Morrow; Kitjawat Tacharoen |
| Abstract: | Optimal production decisions depend on local market characteristics. This paper develops a model to explain firm labor demand and firm density across regions. Firms vary in their technology to combine imperfectly substitutable worker types, and locate across regions with distinct distributions of workers and wages. Firm technologies which best match regional labor markets explain both productivity differences and firm density. Estimating structural model parameters is simple and relies on a two stage OLS procedure. The first stage estimates local market conditions using firm employment and regional data, while the second incorporates regional costs into production function estimation. The method is applied to Chinese manufacturing, population census and geographic data to estimate local market costs and production technologies. In line with the model, we find that labor markets which provide cost advantages explain substantial differences in firm productivity. Furthermore, regions which have lower optimal hiring costs attract more firms per capita. |
| Keywords: | Structural estimation, productivity, firm location, China |
| JEL: | D22 D24 J24 J30 O15 R11 |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1181&r=cna |