WAGE REFORM SOFT BUDGET CONSTRAINT

Wage Reform, Soft Budget Constrains and Competition

  • Author:
  • Publication date: October 1999
  • Page count: 50
  • Language(s) in this book: English
  • Sales number: 99.III.A.32

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About the book

Since the beginning of the Chinese economic reforms in 1978, there has been a series of efforts to reform the labour compensation practice in state-owned enterprises to strengthen the link between pay and productivity. This paper studies the effects of institutional factors on labour compensation in state-owned enterprises focusing on such issues as soft budget constraints faced by the enterprises and the intensity of competition from the non-state enterprises.