Job creation and job destruction in China during 1998–2007

Trade Liberalization and the Gender Employment Gap in China

“…A rapidly expanding body of empirical literature documents the substantial labor market effects of the increasing import competition in China. Trade liberalization has simultaneously induced job creation and job destruction, resulting in net job growth in the formal manufacturing sector (Ma et al, 2015). Import competition-induced job destruction was concentrated in lowproductivity firms, while high-productivity firms created additional jobs (Rodriguez-Lopez and Yu, 2017).…”

“…Accompanied by several other additional market reforms, trade liberalization has had a major impact on the Chinese economy, contributing to rising firm-level productivity (Yu, 2015;Brandt et al, 2017), lower markup dispersion (Lu and Yu, 2015), increased wage inequality and skill premiums (Han et al, 2012;Chen et al, 2017;Xu, 2019), and household adjustments of labor supply, saving, and co-residence (Dai et al, 2018), among other things. A few recent studies have also documented both substantial job creation and job destruction within the manufacturing sector due to China's trade liberalization policies (Ma et al, 2015;Rodriguez-Lopez and Yu, 2017). Yet less is known about the long-run and gender-specific effects of globalization, especially in combination with the economy-wide dynamics of market reforms.…”

“…Our paper contributes to two main strands of the literature. First, we contribute to the growing body of literature on the labor market effects of trade liberalization in China (Ma et al, 2015;Rodriguez-Lopez and Yu, 2017;Dai et al, 2018) by focusing particularly on gender differentials in long-run employment dynamics and their potential causes. Our paper differs from these studies by not only considering formal manufacturing firms (like Ma et al, 2015;Rodriguez-Lopez and Yu, 2017), but also by measuring employment within local labor markets.…”

“…First, we contribute to the growing body of literature on the labor market effects of trade liberalization in China (Ma et al, 2015;Rodriguez-Lopez and Yu, 2017;Dai et al, 2018) by focusing particularly on gender differentials in long-run employment dynamics and their potential causes. Our paper differs from these studies by not only considering formal manufacturing firms (like Ma et al, 2015;Rodriguez-Lopez and Yu, 2017), but also by measuring employment within local labor markets. Since the size of the informal sector in China has surpassed the formal sector in recent years (Liang et al, 2016), and since informal workers may respond differently to trade liberalization (Ben Yahmed and Bombarda, 2020), extending the analysis beyond formal manufacturing firms helps us to measure the full impact of trade liberalization on employment.…”

The more subsidies, the longer survival? Evidence from Chinese manufacturing firms

“…Since the aim of the present article is to study the impact of government subsidies on firm survival, thus to accurately define a firm's state (i.e., survive or exit) is particularly important. Here we follow Ma, Qiao, and Xu () to identify a firm as “birth,” “death,” or “survive”. Moreover, if we utilize the ASIF data for 1998 to 2007 to conduct survival analysis directly this may raise censoring issues, i.e., left censoring and right censoring .…”