China Labor Market

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Question 1. What are the factors that have slowed the migration of workers who once flooded the booming coastal provinces of China in search of unskilled factory work? Answer 1. The factors that have slowed the migration of labor are: 1. Government Policy that encourage yawning income gap between the urban rich and the rural poor in China. 2. Elimination of the agricultural tax.

3. The arising development on remote areas : sprouting malls, housing projects, restaurants and infrastructure projects 4. The noticeable increase of who got moderate-education level 5. Women enlighten and education

6. Youth ambitious to get job excluding the factory floor jobs. 7. Communication & Data revolution which enable many unskilled Chinese workers to bargain and ambitious and looking for more luxury life.

Question 2. How can you relate this slow labor migration phenomenon to the concept of opportunity cost?

Answer 2. From my point of view and what I understood from this article that the national government of China which if continue to reduce the gap between the urban rich and the rural poor class to satisfy the general public class and calm her down at the expense of the economic growth will transform the current economy system to the socialist economy that is called”Command Economy” and its Main objective is Stability and to achieve social justice. And this can be obvious from what government did by cutting agricultural taxes, the big interest to inland prosperity by developing Malls, restaurants, Housing projects and infrastructure projects which encourage the unskilled labor not being forced to travel thousands of miles for jobs on the coast. Conclusion: this slow labor migration phenomenon caused mainly by the government its opportunity cost will be high and the same trade off will be, where scarcity in the Chinese labor will lead to increase in workers’ wages and so increase in the goods and products prices manufactured in China and...
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