Firms also face challenges in promoting new participation in the labor force, which has led to a rise in the employment rate of female spouses and the labor force participation rate of women (Charts 12 and 13). An increase in part-time and low-paid workers could result in a decline in wages per worker.
The latter two are pre-conditions for further currency internationalisation to allow foreign investors to invest in China, deepen financial markets and improve the allocation of capital in the economy. What is the role of monetary and fiscal policies in this process?