1. By Hongbin Li, Lei Li, Binzhen Wu, and Yanyan Xiong Presenters: Nadav Yosef Rostislav Tager

2.  The Chinese model  Low annual wage : 1. Comparing to others 2. Relative to the productivity  Growth in wages  The reasons for the growth  Wages Vs Productivity

3. Urban labor force  Urban workers (hukou)  Migrant workers (rural hukou)

5. The causes for wage rise  Privatization of state owned enterprises  Re-establishment of labor market  Slowdown of labor force growth and migration

9.  To determine the cost of work force the writers compared the wage to productivity ratio.  In the years 1982 to 1997 the Chinese work force was worthwhile.  Through the years, the productivity stabled itself while the wages kept rising, therefore, the Chinese work force is becoming less worthwhile compared to other Asian manufacturing countries.

10.  Institutional Reforms.  Demographic Transition and Labor Shortage.  Slowing Down of Structural Changes.

11.  Stage 1 : Wage system reform  Stage 2 : The develop of labor market

13.  The communist Chinese government imposed restrictions on its citizens to help govern the state according to its principles.  Due to the restrictions on migration, the average age of migrating workers increased.  Development of the manufacturing industry in the inland areas.

14. In the 80’s the Chinese work force was cheap and companies benefited from outsourcing to china. As a result there were more work places and a large migrating work force from the rural areas. In the late 90’s,due to government reforms,the wages have started to grow towards the western average wages making the Chinese work force no longer cheap. For the Chinese economy to withstand the change and keep growing the industry should move to high end technologies manufacturing.

15. In short, the end of cheap labor in China does not mean the end of Chinese economic growth.