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Even if wages are comparable, are other costs of employment, such as unemployment insurance, healthcare, pay roll tax comparable? And even if they are comparab
by jeremyjh 7y ago
Even if wages are comparable, are other costs of employment, such as unemployment insurance, healthcare, pay roll tax comparable?
And even if they are comparable now, its true that it no longer matters. The work moved to China because of low wages, and its going to stay there now because all of the labor force and supply chain infrastructure are much better developed. You are quite right those things no longer exist in the US, they have atrophied.
- baybal2 7y ago> Even if wages are comparable, are other costs of employment, such as unemployment insurance, healthcare, pay roll tax comparable? At ~23.5% Chinese social insurance (medical, trauma and serious illness, pension, housing fund, maternity, unemployment) costs more to employer than in US, at least in Guangdong province. This is why I was saying that guessing purely on numbers, lower cost of capital, external risks, taxes, social payments, and somewhat lower wages, USA should be a better place for manufacturing than China