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Complementarities, constraints and c...

Mohapatra, Sandeep.

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Complementarities, constraints and contracts: Incentive design and occupational choice in China.

Record Type:	Electronic resources : Monograph/item
Title/Author:	Complementarities, constraints and contracts: Incentive design and occupational choice in China./
Author:	Mohapatra, Sandeep.
Description:	146 p.
Notes:	Source: Dissertation Abstracts International, Volume: 65-03, Section: A, page: 1041.
Contained By:	Dissertation Abstracts International65-03A.
Subject:	Economics, General. -
Online resource:	http://pqdd.sinica.edu.tw/twdaoapp/servlet/advanced?query=3126630

Complementarities, constraints and contracts: Incentive design and occupational choice in China.
Mohapatra, Sandeep.

Complementarities, constraints and contracts: Incentive design and occupational choice in China. - 146 p.

Source: Dissertation Abstracts International, Volume: 65-03, Section: A, page: 1041.

Thesis (Ph.D.)--University of California, Davis, 2004.

This dissertation includes three studies regarding industrialization and rural development in China. I analyze how the design of new incentive mechanisms has made China's rural enterprises more efficient, and how the enterprise sector as a whole has grown as the result of an evolutionary process that shifts a region's primary occupation into more complex forms. The findings of this study will be of interest not only to scholars of China but also of interest to the industrial organization and applied econometrics community.Subjects--Topical Terms:

1017424
Economics, General.

Complementarities, constraints and contracts: Incentive design and occupational choice in China.
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245 1 0 $a Complementarities, constraints and contracts: Incentive design and occupational choice in China.
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500 $a Source: Dissertation Abstracts International, Volume: 65-03, Section: A, page: 1041.
502 $a Thesis (Ph.D.)--University of California, Davis, 2004.
520 $a This dissertation includes three studies regarding industrialization and rural development in China. I analyze how the design of new incentive mechanisms has made China's rural enterprises more efficient, and how the enterprise sector as a whole has grown as the result of an evolutionary process that shifts a region's primary occupation into more complex forms. The findings of this study will be of interest not only to scholars of China but also of interest to the industrial organization and applied econometrics community.
520 $a In the first essay I identify complementarities between incentive mechanisms used by firm-owners to motivate managers. I consider a problem in which the firm-owner uses two incentive instruments, profit-sharing and investment-bonding, to motivate the manager in two tasks, production and asset-maintenance. Using a multi-task, principal-agent model I derive testable hypotheses regarding the complementary and individual effects of the instruments on firm performance. The econometric analysis, based on a data set of 56 non-state rural firms that were observed in 1988 and 1995, shows that the two instruments are indeed complementary and jointly lead to improved firm profitability.
520 $a In my second essay I show how rural development in China can be characterized as a process of climbing a development ladder, with each step up the ladder denoting the economy's transition into a more complex mode of production. Using data from 8 provinces in rural China I show how, across space and over time, the evolution of occupations proceeds from traditional and simple forms of agriculture to modern, more complex manufacturing firms. This is the first study to formally quantify the link between different occupations during the process of China's rural development.
520 $a In the final essay I focus on self-employed occupations in rural China. I evaluate whether the rise of self-employment promotes entrepreneurship and is a sign of development, or, whether it is a stopover for disadvantaged workers and a sign of distress. Using data on 20-year labor market histories of more than 2000 individuals, I provide descriptive and econometric evidence that self-employment in rural China is growing in a manner that is consistent with it developing China's rural economy.
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