Labor Market Distortions, Rural-Urban Inequality, and the Opening of China's Economy

@article{Hertel2004LaborMD,
  title={Labor Market Distortions, Rural-Urban Inequality, and the Opening of China's Economy},
  author={T. Hertel and F. Zhai},
  journal={Institutional & Transition Economics eJournal},
  year={2004}
}
  • T. Hertel, F. Zhai
  • Published 2004
  • Economics
  • Institutional & Transition Economics eJournal
The authors evaluate the impact of two key factor market distortions in China on rural-urban inequality and income distribution. They find that creation of a fully functioning land market has a significant impact on rural-urban inequality. This reform permits agricultural households to focus solely on the differential between farm and non-farm returns to labor in determining whether to work on or off-farm. This gives rise to an additional 10 million people moving out of agriculture by 2007 and… Expand
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