Politically Incorrect Bosses and Women's Labor Market Opportunities in Urban China
If you are a young educated woman what are the opportunities in China's cities for advancing your career? From basic labor economics, we know that you will go further if your employer invests more in your skills and development (firm specific human capital and general skills). Potential employers compare the expected marginal product of hiring a new worker relative to the wage and training costs.
The Chinese bosses are not politically correct. "The boss would ask several questions about my qualifications, then he’d say: ‘I see you just got married. When will you have a baby?’ It was always the last question. I’d say not for five years, at least, but they didn’t believe me,” Ms. Feng said."
Would U.S bosses like to ask this question? Does such political incorrectness help to explain China's amazing growth as it leads to more efficient investment in workers?
"Many employers are choosing not to hire women in an economy where there is an oversupply of labor and women are perceived as bringing additional expense in the form of maternity leave and childbirth costs. The law stipulates that employers must help cover those costs, and feminists are seeking a system of state-supported childbirth insurance to lessen discrimination. The result is that even highly qualified candidates like Ms. Feng can struggle to find a footing. Practical concerns about coping in a highly competitive world are feeding into a powerful identity crisis among China’s women."
Given the focus in China on maximizing economic growth, the economic theory of discrimination would predict that young women will have trouble finding jobs unless they are willing to work for a pay cut.
A solution to this problem would be for more women to become "bosses" and let them do the screening and arrange "flexible" work schedules to accommodate young women who want work/life balance. The rise of women entrepreneurs in the United States helped to address this issue here.
The Chinese bosses are not politically correct. "The boss would ask several questions about my qualifications, then he’d say: ‘I see you just got married. When will you have a baby?’ It was always the last question. I’d say not for five years, at least, but they didn’t believe me,” Ms. Feng said."
Would U.S bosses like to ask this question? Does such political incorrectness help to explain China's amazing growth as it leads to more efficient investment in workers?
"Many employers are choosing not to hire women in an economy where there is an oversupply of labor and women are perceived as bringing additional expense in the form of maternity leave and childbirth costs. The law stipulates that employers must help cover those costs, and feminists are seeking a system of state-supported childbirth insurance to lessen discrimination. The result is that even highly qualified candidates like Ms. Feng can struggle to find a footing. Practical concerns about coping in a highly competitive world are feeding into a powerful identity crisis among China’s women."
Given the focus in China on maximizing economic growth, the economic theory of discrimination would predict that young women will have trouble finding jobs unless they are willing to work for a pay cut.
A solution to this problem would be for more women to become "bosses" and let them do the screening and arrange "flexible" work schedules to accommodate young women who want work/life balance. The rise of women entrepreneurs in the United States helped to address this issue here.
posted by Matthew E. Kahn at 7:54 AM
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