Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/228251
Authors: 
Fang, Lei
Herrendorf, Berthold
Year of Publication: 
2019
Series/Report no.: 
Working Paper No. 2019-21
Abstract: 
We document that the employment share of high-skill-intensive services is much lower in China than in countries with similar gross domestic product (GDP) per capita. We build a model of structural change with goods and low- and high-skill-intensive services to account for this observation. We find that large distortions limit the size of high-skill-intensive services in China. If they were removed, both high-skill-intensive services and GDP per capita would increase considerably. We document a strong presence of state-owned enterprises in high-skill-intensive services and argue that this presence leads to important distortions.
Subjects: 
China
high-skill intensive services
structural change
JEL: 
O41
O47
O51
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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