Towards a Labour Market in China (Studies on Contemporary China)

From an administered labor system under central planning, the Chinese economy has moved towards a labor market. This book reviews the progress that has been made over two decades of urban economic reform. It analyzes the underlying political economy that has both induced and impeded reform, and examines the economic changes that have unleashed market forces. Based on frontier research using specially designed and collected survey data, the book documents the rising wage inequality, the greater rewards for skills, the growing wage segmentation based on labor immobility and profit-sharing, the emergence of serious urban unemployment, and the competition from the rising tide of rural migrants. China does not yet have a functioning labor market: the book concludes by examining the prospects for its creation. Combining Remarkable Economic Transition And Dynamic Growth, China May Well Have The Most Fascinating Economy In The World. Over The Period Of Economic Reform China Has Moved From An Administered Labour System Towards The Creation Of A Labour Market. The Scale Of This Transformation, Involving New Economic Incentives, Vast Labour Migration, Draconian Retrenchment Of State Workers, And Sharply Rising Wage Inequality, Is Unprecedented In World History. The Authors Draw On More Than A Decade Of Their Research To Document And Analyse This Process. The Book Uses The Rigorous Analysis And Empirical Methodology Of Modern Economics. Much Of The Evidence Is Survey-based But A Systemic Approach Is Adopted: Economic And Sociological Theory, Institutional Analysis And Political Economy Are Also Used To Explain The Causes, Pressures, Obstacles And Consequences Of The Move Towards A Labour Market. Because The Subject Is Of Such Importance And General Interest, The Book Is Written For Development Economists, Labour Economists, Transition Economists, Policy-makers, And Those In Development Studies And Comparative Sociology As Well As For China Specialists.--jacket. Introduction: Setting The Stage -- Labour Policy And Progress: Overview -- The Urban Labour Market -- Increasing Wage Inequality -- The Spatial Behaviour Of Wages -- Rural Migrants In Urban Enterprises -- Redundancies, Unemployment, And Migration -- Immobility And Segmentation Of Labour -- The Rural Labour Market -- Rural Labour Allocation -- The Imperfect Labour Market -- Information, Social Networks, And The Labour Market -- Conclusion. John Knight And Lina Song. Includes Bibliographical References And Index. China's remarkable economic transition and capacity for dynamic growth has stunned the world. Throughout the period of economic reform, China has been moving towards the creation of a labour market. The scale of this transformation is unprecedented. New economic incentives, vast labour migration, draconian retrenchment of state workers, and sharply rising wage inequality are all characteristic of this unique transition. Drawing on more than a decade of survey-based research, the authors systematically document and analyse this important transformation. They use economic and sociological theory, institutional analysis and political economy to fully explain the causes, pressures, obstacles and consequences of the move towards a labour market in China. It is argued that much progress has been made towards the creation of a labour market but that the process is far from complete. From an administered labour system under central planning, the Chinese economy has moved towards a labour market. This text reviews the progress that has been made over two decades of urban economic reform.