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By Shi Li, Hiroshi Sato

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Extra info for Unemployment, Inequality and Poverty in Urban China (Routledge Studies on the Chinese Economy)

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Note: *Earnings in previous job, updated to allow for price inflation. Standard deviation for continuous variables in parentheses. 6 The incidence of retrenchment was higher among women, non-party members, industrial, commercial and service workers, and urban collective and local government but not central government SOEs. 2 Econometric specification Our first research question is what kinds of individual suffered retrenchment. 1 provide some insights into this question, multivariate analysis is required in order to isolate the contribution of particular factors.

Predicted distribution of dependent variable: 0 = 375, 1 = 58. 364*100. 2). These imply a long expected duration of unemployment of about four years. Given the very incomplete coverage and low level of unemployment benefits, unemployment leads to a pronounced loss of personal income. However, in this section we consider whether the re-employed workers are ‘scarred’ by the effect of unemployment. A reports wage functions estimated separately for workers who have never been retrenched and for re-employed workers.

This imposes a technical limitation on our later estimates of wage functions, since we had hoped to use this variable to identify the correction for the possible selectivity of retrenchment. 4 The duration of unemployment How long a spell of unemployment do retrenched workers face in China? Over half (55 per cent) of the re-employed found their new job within a year of being 30 Simon Appleton et al. sacked. Among these re-employed workers, the duration of unemployment was heavily skewed: the median spell was 10 months, but the mean was 18 months (the inter-quartile range was 4 to 28 months).

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