Surplus Labour and Lewis Turning Points in China

Download or read book Surplus Labour and Lewis Turning Points in China written by Xiaobing Wang and published by . This book was released on 2013 with total page 15 pages. Available in PDF, EPUB and Kindle. Book excerpt: It has been widely recognized that China has had a large pool of surplus labour. However, despite its significant implications for wage levels and the Chinese economy, the current debates yield conflicting results as to whether the Lewis turning point has been reached. This paper clarifies a theoretical issue about the mechanisms of surplus labour absorption, subsequently indentifies two Lewis turning points, and examines the factors that affect the reaching of these two Lewis turning points. It then applies the framework to China to study the labour absorption process and examines the implications of the removal of the Hukou system in terms of welfare and economic performance.