Abstract
Rich labor resources and low prices have made Chinese products superior to international competition. In recent years, Chinese wages in the manufacturing industry have risen due to the low fertility rate, which reduced the working-age population, and the migration of rural laborers to urban areas, which created a labor shortage in rural areas. The competitive power of China's manufacturing industry is dependent on inexpensive labor. There are often two ways to measure labor productivity; one is the average productivity of labor (APL), while the second is the marginal productivity of labor (MPL). This chapter uses the data from large-scale Chinese manufacturing enterprises from 2000 to 2006. The author calculates the level of payment for labor, the APL, the enterprise's production function, the MPL level, and further understand labor costs. Keywords: average productivity of labor (APL); China's manufacturing industry; labor productivity; marginal productivity of labor (MPL)
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