EMPLOYMENT AND WAGE DETERMINATION IN CHINA RURAL INDUSTRY - INVESTIGATION USING 1984-1990 PANEL-DATA

This paper examines the employment and wage behavior of Chinese townsh ip and village enterprises (TVEs), based on a panel of data for the ye ars 1984-1990. The relative weight of employment to wage earnings in t he TVEs' objective function is estimated to be between zero and unity. The proemployment bias of TVEs is found to be sensitive to the financ ial situation of the enterprises. The paper also provides direct evide nce that TVEs shared rents with their workers. (C) 1998 Academic Press .