Three Essays on The Chinese Labor Market

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This dissertation contains three empirical studies on the Chinese labor market.We begin by investigating relationship between primary schooling and labor market outcomes.We turn next to one specific Chinese labor market-taxi industry.We discuss the relationship between labor supply and reference dependent preference,as well as the issue of overwork in China.  Primary schools are where most children get basic skill training.Yet little is known about how the institutional settings of primary schooling affect adult outcomes.In1980,Chinese government decided to prolong the length of primary schooling from five years to six.The reform rolled out gradually across the country over30years.Using a differences-in-differences approach,we find that the reform increases total years of education by0.803year.One additional year of primary schooling does not affect educational credentials,adult income,cognitive ability or male employment.But it reduces the probability of being employed for females by4.8-9.2percent.The effect is more obvious and larger for those low-skilled or married women.Our results suggest caution as to the cost of education when implementing and evaluating the reform of compulsory education.  Intertemporal labor supply is the foundation of modern empirical economics.We turn next to one special market-taxi industry.We find that Hangzhou cabdriverswage elasticity is significantly positive,their working decisions are largely affected by shift time,and crude proxy variables for income and hours targets could hardly explain their working behavior.Nevertheless,Hangzhou cabdrivers are still affected by reference dependent preference.Using new empirical strategies,we show that cabdrivers are more likely to continue working when wage rates are unexpectedly low and more likely to quit when wage rates are unexpectedly high.  Overwork is an important but neglected issue in China.The work schedules of most Shanghai cabdrivers are24-hour per shift.One half of Shanghai cabdrivers work continuously for more eighteen hours in a given shift.How does such shift schedule affect labor supply or general well-being?We use both trip and survey data to address these questions.We find that Shanghai cabdrivers are still optimizing their intertemporal labor supply although the 24-hour shift schedule do constrain their optimization decision.Besides,longer work hours are associated with poorer social relationship,lower lifesatisfaction and worse health status.Our results has provocative policy implications.The government should set regulations to stop these shift-schedules.More policies are needed to improve the living condition of Shanghai cabdrivers.
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