A Neoclassical Perspective of the Level of Unemployment in China: [Essay Example], 402 words GradesFixer

Haven't found the right essay?

Get an expert to write your essay!


Professional writers and researchers


Sources and citation are provided


3 hour delivery

This essay has been submitted by a student. This is not an example of the work written by professional essay writers.

A Neoclassical Perspective of the Level of Unemployment in China

Download Print

Pssst… we can write an original essay just for you.

Any subject. Any type of essay.

We’ll even meet a 3-hour deadline.

Get your price

121 writers online

Download PDF

Neoclassic in china -­ unemployment

Even when disequilibrium arises, with some level of unemployment, it is possible to reestablish the equilibrium by lowering the wages. This naturally leads to a rise in labor demand, which resets the initial equilibrium (Bos 2012). For instance, the rate of unemployment in China has reduced in recent years to just over 4%. However, the high rates of unemployment have led to reduction in wages and in the event that employees demand higher wages, there are many more people who will take the available jobs. Wages in other Asian nations earn up to ten times more than the people working in China. This has led to increased profit margins and attracted inward foreign direct investment as more foreign companies start operations in China (Zhang, Fan & Haan 2010). Cheng (2013) provides that capital accumulation in form of new factories, capital assets, communication systems and manufacturing machinery contributed to economic growth in China. Nevertheless, workers in the country were also important in ensuring a sharp, sustained increase in productivity, which was the driving force behind the economic boom.

The gains made in productivity from 1979 to 1994 accounted for more than 42% of the growth in China and by the early 1990s it had overtaken capital as the most significant source of the growth. Equilibrium is also attained in case of inequalities between the levels of savings and investments. Reducing the weight of investments in total available incomes minimizes the demand for money and contributes indirectly, given the intention to stimulate it, to a reduction of the interest rate, therefore becoming attractive for any potential investors who would establish the market equilibrium. Neoclassic perspective takes over the basic elements of the classical theory but offers aspects that are specific to it. This includes the new vision concerned with the value of goods that is determined based on the utility it generates and perceived at the level of the consumer (Cornelia Mitran & Mihai Ipate 2014). Neoclassic perspective also popularizes the marginal concept, which provides that decisions made by economic actors are based on margins. For instance, an organisation acquires a new member of staff based on the expected rise in profits that the new worker will bring. Therefore, the neo-classical perspective differs from classical theory in that it provides an explanation of how essential goods such as food products can be cheap while luxurious items are expensive (Coussy 2005).

Remember: This is just a sample from a fellow student.

Your time is important. Let us write you an essay from scratch

100% plagiarism free

Sources and citations are provided

Find Free Essays

We provide you with original essay samples, perfect formatting and styling

Cite this Essay

To export a reference to this article please select a referencing style below:

A Neoclassical Perspective of the Level of Unemployment in China. (2018, October 16). GradesFixer. Retrieved November 25, 2020, from https://gradesfixer.com/free-essay-examples/a-neoclassical-perspective-of-the-level-of-unemployment-in-china/
“A Neoclassical Perspective of the Level of Unemployment in China.” GradesFixer, 16 Oct. 2018, gradesfixer.com/free-essay-examples/a-neoclassical-perspective-of-the-level-of-unemployment-in-china/
A Neoclassical Perspective of the Level of Unemployment in China. [online]. Available at: <https://gradesfixer.com/free-essay-examples/a-neoclassical-perspective-of-the-level-of-unemployment-in-china/> [Accessed 25 Nov. 2020].
A Neoclassical Perspective of the Level of Unemployment in China [Internet]. GradesFixer. 2018 Oct 16 [cited 2020 Nov 25]. Available from: https://gradesfixer.com/free-essay-examples/a-neoclassical-perspective-of-the-level-of-unemployment-in-china/
copy to clipboard

Sorry, copying is not allowed on our website. If you’d like this or any other sample, we’ll happily email it to you.

    By clicking “Send”, you agree to our Terms of service and Privacy statement. We will occasionally send you account related emails.


    Attention! this essay is not unique. You can get 100% plagiarism FREE essay in 30sec

    Recieve 100% plagiarism-Free paper just for 4.99$ on email
    get unique paper
    *Public papers are open and may contain not unique content
    download public sample

    Sorry, we cannot unicalize this essay. You can order Unique paper and our professionals Rewrite it for you



    Your essay sample has been sent.

    Want us to write one just for you? We can custom edit this essay into an original, 100% plagiarism free essay.

    thanks-icon Order now

    Hi there!

    Are you interested in getting a customized paper?

    Check it out!
    Having trouble finding the perfect essay? We’ve got you covered. Hire a writer

    GradesFixer.com uses cookies. By continuing we’ll assume you board with our cookie policy.