Labor flexibility, ownership and firm performance in China

Julia Lane, Harry G. Broadman, Inderjit Singh

Research output: Contribution to journalArticle

Abstract

Developed and developing countries alike are privatizing or corporatizing state owned enterprises (SOEs), often citing the flexibility to hire and shed labor as an advantage. However, there is little empirical evidence on the extent to which this improves firm performance. This paper investigates the linkage between labor flexibility, ownership and firm performance using China as a case study. We find that SOEs are much less able to adjust quickly to demand shocks than are other ownership forms and that the degree of worker input into hiring and firing decisions slows the ability of firms to adapt, negatively affecting firm performance.

Original languageEnglish (US)
Pages (from-to)621-635
Number of pages15
JournalReview of Industrial Organization
Volume13
Issue number6
DOIs
StatePublished - 1998

Fingerprint

Personnel
Developing countries
Industry
China
Ownership
Labor flexibility
Firm performance
State-owned enterprises
Demand shocks
Workers
Developed countries
Linkage
Labor
Empirical evidence
Ownership forms

Keywords

  • Corporatisation
  • Firm performance
  • Labor flexibility
  • Privatisation

ASJC Scopus subject areas

  • Management of Technology and Innovation
  • Strategy and Management
  • Economics and Econometrics

Cite this

Labor flexibility, ownership and firm performance in China. / Lane, Julia; Broadman, Harry G.; Singh, Inderjit.

In: Review of Industrial Organization, Vol. 13, No. 6, 1998, p. 621-635.

Research output: Contribution to journalArticle

Lane, Julia ; Broadman, Harry G. ; Singh, Inderjit. / Labor flexibility, ownership and firm performance in China. In: Review of Industrial Organization. 1998 ; Vol. 13, No. 6. pp. 621-635.
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