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Market Expanding or Market Stealing? Competition with Network Effects in Bike-Sharing

Guangyu Cao, Ginger Zhe Jin, Xi Weng, Li-An Zhou, Jan 16, 2019

Positive network effects may lead to winner-takes-all in some markets. The column analyses dockless bike-sharing in China to show instead how an incumbent can benefit from positive spillovers from a competitor’s entry. In the case of bike-sharing, consumers multi-home, the market exhibits positive network effects, and investment by two firms is more cost-efficient than investment by one.

Accounting for Urban China’s Rising Income Inequality: The Roles of the Labor Market, Human Capital, and Marriage Market Factors

Shuaizhang Feng, Gaojie Tang, Mar 27, 2019

China has witnessed persistent increases in economic inequality since the early 1990s when the urban labor market began its transformation — from centrally-controlled to market-driven. Using the Urban Household Survey data, this paper (Feng and Tang, 2018) documents the trends...

Do CEOs Know Best? Evidence from China

Nicholas Bloom, Hong Cheng, Mark Duggan, Hongbin Li, Franklin Qian, Jan 30, 2019

Using data from the China Employer-Employee Survey (CEES), a recent survey of Chinese manufacturing firms, we analyze the extent to which employees of differing levels are able to assess their firms’ management practices. Our study finds that of CEOs, managers, and workers, CEOs tend to have the most accurate appraisals of their firms. Additionally, we find that firms with higher levels of disagreement...

Gender-Targeted Job Ads: Patterns, Impacts, and Mechanisms

Peter Kuhn, Kailing Shen, Feb 27, 2019

Gender-targeted job ads are common in many emerging economies. Using data from jobboards—which differ substantially in terms of culture, size, and user groups targeted—our empirical evidence suggests that policies that target workers’ application decisions may be at least as important as policies that target employers’ screening decisions, if not more.

China’s Rebalancing: Recent Progress, Prospects, and Policies

Rui C. Mano, Jiayi Zhang, Mar 20, 2019

While China’s growth gathered momentum in 2017, rebalancing was uneven and decelerated along many dimensions reflecting the temporary factors behind the growth pickup. Going forward, rebalancing is expected to proceed as these temporary factors recede, but elevated income inequality and leverage will remain a challenge. The authorities are...