Title

The supply of labour by individuals to a Chinese collective farm: the case of Dahe commune

Document Type

Article

Date of Original Version

1-1-1993

Abstract

We provide the first econometric tests of the theory of individual labour supply in a collective farm on data at the individual level. The data are for members of five production teams in a commune in Hebei Province in 1979. Our switching regressions model does not provide evidence of a significant labour supply response to differences in anticipated earnings. This failure may be indirect evidence of "under-differentiation' of payments, due to egalitarian ideology. Results imply that much of the labour supplied to the teams studied was discretionary, and not a response to coercive work norms. The implication that another significant portion of labour supplied was so coerced. Finds support for theoretical models which predict that labour could be over supplied because marginal payments reflected labour's average net product rather than its marginal product. -from Authors

Publication Title

Economica

Volume

60

Issue

240

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