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China’s Labor Supply

ECON 2105 C. China’s Labor Supply. China Faces Dwindling Labor Supply. By Bloomberg News - Aug 30, 2011. China Faces Dwindling Labor Supply. China’s 30yr old one-child policy has caused a decrease in population A decrease in labor force has caused the real wage rate to increase

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China’s Labor Supply

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  1. ECON 2105 C China’s Labor Supply

  2. China Faces Dwindling Labor Supply By Bloomberg News - Aug 30, 2011

  3. China Faces Dwindling Labor Supply • China’s 30yr old one-child policy has caused a decrease in population • A decrease in labor force has caused the real wage rate to increase • Chinese companies are forced to upgrade to higher quality / technological products / higher value products • Japan had to do the same thing in the 1960’s and 70’s and look where they are now • It might be a good time to invest in Chinese technological and machine industry companies

  4. China’s Labor Supply RWR LS2 LS1 LD LABOR • CURVE SHIFT: • $ LS = $population

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