How will China’s reformed standards strategy affect corporate labor employment?

The Chinese government is phasing in reforms for many technical standards that shape the products and services used by consumers around the world. While China has primarily depended on unilateral government authority for developing its standard system, the reforms would also incorporate market economies. New research published in Contemporary Economic Policy examined the impact of these reforms on corporate labor employment.

The study’s findings indicate that comprehensive standardization reform facilitates an increase in corporate labor employment by reducing transaction costs, enhancing operational efficiency, and improving the financing environment. The most profound impacts will be seen in firms characterized by non-state ownership, competitive industries, lower levels of regional marketization, and significant gender disparities.

The reforms encourage firms to improve labor investment efficiency, optimize labor structure, increase labor compensation, and enhance labor training.

“Our study provides essential insights for governments to advance the standard system and for firms to improve standardized practices,” the authors wrote.

URL upon publication: https://onlinelibrary.wiley.com/doi/10.1111/coep.12688

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First published in 1982, Contemporary Economic Policy publishes scholarly research and analysis on important policy issues facing society. The journal provides insight into the complexity of policy decisions and communicates evidence-based solutions in a form accessible to economists and policy makers. Contemporary Economic Policy provides a forum for debate by enhancing our understanding of key issues and methods used for policy analysis.

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