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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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Presentation Transcript
china faces dwindling labor supply
China Faces Dwindling Labor Supply

By Bloomberg News - Aug 30, 2011

china faces dwindling labor supply1
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
china s labor supply
China’s Labor Supply

RWR

LS2

LS1

LD

LABOR

  • CURVE SHIFT:
  • $ LS = $population