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@techreport{NBERw19733,
 title = "Economic Transition and Private-Sector Labor Demand: Evidence from Urban China",
 author = "Iyer, Lakshmi and Meng, Xin and Qian, Nancy and Zhao, Xiaoxue",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "19733",
 year = "2013",
 month = "December",
 doi = {10.3386/w19733},
 URL = "http://www.nber.org/papers/w19733",
 abstract = {This paper studies the policy determinants of economic transition and estimates the demand for labor in the infant private sector in urban China. We show that a reform that untied access to housing in urban areas from working for the state sector accounts for more than a quarter of the overall increase in labor supply to the private sector during 1986-2005. Using the reform to instrument for private-sector labor supply, we find that private-sector labor demand is very elastic. We provide suggestive evidence that the reform equalized wages across sectors and reduced private-sector rents.},
}