The working dread? Analysing the impact of the Hukou reform on firms' monopsony power in China
This paper uses firm-level data from the Chinese Annual Survey of Industrial Firms (CASIF) for the years 1998-2007 to analyse the impact of the household registration system (Hukou) reform in China on monopsony power of firms. I adopt a multiple-period difference-in¬differences framework to...
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| Format: | Working paper |
| Language: | English |
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Centre for the Study of African Economies
2021
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| _version_ | 1826277507578462208 |
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| author | Brzezinska, I |
| author_facet | Brzezinska, I |
| author_sort | Brzezinska, I |
| collection | OXFORD |
| description | This paper uses firm-level data from the Chinese Annual Survey of Industrial Firms (CASIF) for the years 1998-2007 to analyse the impact of the household registration system (Hukou) reform in China on monopsony power of firms. I adopt a multiple-period difference-in¬differences framework to exploit the non-uniform labour market reform implementation. By comparing firms in cities that adopted the reform to firms in cities that did not, I find that relaxing restrictions on geographical labour mobility decreased firms’ monopsony power overall. Further heterogeneity analysis suggests that the effect can be decomposed into two offsetting forces: firms in big cities saw their monopsony power increase, while it diminished for firms in small cities. Consistent with a decrease in monopsony power, firms in reform cities spent 26% more on the worker housing fund and 7% more on unemployment insurance as a result of the Hukou reform. I find that the Hukou reform is positively related with both marginal and average products of labour. |
| first_indexed | 2024-03-06T23:29:56Z |
| format | Working paper |
| id | oxford-uuid:6baf960c-30da-4cd8-8d30-394fb76631eb |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-06T23:29:56Z |
| publishDate | 2021 |
| publisher | Centre for the Study of African Economies |
| record_format | dspace |
| spelling | oxford-uuid:6baf960c-30da-4cd8-8d30-394fb76631eb2022-03-26T19:05:41ZThe working dread? Analysing the impact of the Hukou reform on firms' monopsony power in ChinaWorking paperhttp://purl.org/coar/resource_type/c_8042uuid:6baf960c-30da-4cd8-8d30-394fb76631ebEnglishSymplectic ElementsCentre for the Study of African Economies2021Brzezinska, IThis paper uses firm-level data from the Chinese Annual Survey of Industrial Firms (CASIF) for the years 1998-2007 to analyse the impact of the household registration system (Hukou) reform in China on monopsony power of firms. I adopt a multiple-period difference-in¬differences framework to exploit the non-uniform labour market reform implementation. By comparing firms in cities that adopted the reform to firms in cities that did not, I find that relaxing restrictions on geographical labour mobility decreased firms’ monopsony power overall. Further heterogeneity analysis suggests that the effect can be decomposed into two offsetting forces: firms in big cities saw their monopsony power increase, while it diminished for firms in small cities. Consistent with a decrease in monopsony power, firms in reform cities spent 26% more on the worker housing fund and 7% more on unemployment insurance as a result of the Hukou reform. I find that the Hukou reform is positively related with both marginal and average products of labour. |
| spellingShingle | Brzezinska, I The working dread? Analysing the impact of the Hukou reform on firms' monopsony power in China |
| title | The working dread? Analysing the impact of the Hukou reform on firms' monopsony power in China |
| title_full | The working dread? Analysing the impact of the Hukou reform on firms' monopsony power in China |
| title_fullStr | The working dread? Analysing the impact of the Hukou reform on firms' monopsony power in China |
| title_full_unstemmed | The working dread? Analysing the impact of the Hukou reform on firms' monopsony power in China |
| title_short | The working dread? Analysing the impact of the Hukou reform on firms' monopsony power in China |
| title_sort | working dread analysing the impact of the hukou reform on firms monopsony power in china |
| work_keys_str_mv | AT brzezinskai theworkingdreadanalysingtheimpactofthehukoureformonfirmsmonopsonypowerinchina AT brzezinskai workingdreadanalysingtheimpactofthehukoureformonfirmsmonopsonypowerinchina |