1 论文标题
Costly Labor Adjustment: Effects of China's Employment Regulations2 作者信息
Russell Cooper, Guan Gong, Ping Yan3 出处和链接（比如，NBER working paper No.11000）
NBER Working Paper No. 17948
Issued in March 2012
4 摘要
This paper studies the employment and productivity implications of new labor regulations in China. These new restrictions are intended to protect workers' employment conditions by, among other things, increasing firing costs and increasing compensation. We estimate a model of costly labor adjustment from data prior to the policy. We use the estimated model to simulate the effects of the policy. We find that increases in severance payments lead to sizable job creation, a significant reduction in labor reallocation and an increase in the exit rate. A policy of credit market liberalization will reduce employment, slightly increase labor reallocation and reduce exit. The estimated elasticity of labor demand is about unity so that an increase in the base wage leads to sizable job losses.