Labor Market in China
PLEKHANOV RUSSIAN UNIVERSITY OF ECONOMICS
INTERNATIONAL BUSINESS SCHOOL
COURSEWORK IN LABOR ECONOMICS
Chinese Labor Market
Student: Goremykina Polina
Group № 5302
Supervisor: Razumova T. O.
Moscow 2012 Table of contents:
1. Introduction 3
2. Transition of the Chinese labor market 4 2.1 Breaking the Iron Rice Bowl 4 2.2. Consequences for a Labor Force in Transition 6
3. Labor market reform 7 3.1. Post-Wage Grid Wage Determination 8 3.1.1. Flexible Labor Market 8 3.1.2. Government Control 9 3.1.3 Collective Bargaining 10 3.2. Marketization Process 10
4. Trade unions in a transforming labor market 11 4.1. Organizational Structure and Function 11 4.2. Role of Grass-root Trade Unions 12 4.3. Distinguishing Collective Contracts and Wage Bargaining 13 4.4. Independent Unions 14 4.5. NGO and Foreign Influences on Labor Relations 15 4.6. Are there “Real” Chinese Trade Unions? 16
5. Evaluating China’s industrial relations 17
6. Wages in China 18
7. The program of attraction of foreign experts in China 19 7.1 Chinese experience of attraction of foreign experts 20
Bibliography 22
1. Introduction
China’s labor market has undergone significant changes in the past twenty years. A more market- oriented labor market has emerged with the growing importance of the urban private sector, as state-owned enterprises (SOEs) have downsized. At the same time, rural employment growth has slowed, and migrants have sought jobs in the more dynamic coastal provinces. Despite the progress on reforms, a sizable surplus of labor still exists in the rural sector (about 150 million) and SOEs (about 10–11 million).
The main challenge facing China’s labor market in coming years is to absorb the surplus labor into quality jobs while adjusting to World Trade Organization (WTO) accession. This paper estimates that if GDP growth averages 7 percent and the employment elasticity is
INTERNATIONAL BUSINESS SCHOOL
COURSEWORK IN LABOR ECONOMICS
Chinese Labor Market
Student: Goremykina Polina
Group № 5302
Supervisor: Razumova T. O.
Moscow 2012 Table of contents:
1. Introduction 3
2. Transition of the Chinese labor market 4 2.1 Breaking the Iron Rice Bowl 4 2.2. Consequences for a Labor Force in Transition 6
3. Labor market reform 7 3.1. Post-Wage Grid Wage Determination 8 3.1.1. Flexible Labor Market 8 3.1.2. Government Control 9 3.1.3 Collective Bargaining 10 3.2. Marketization Process 10
4. Trade unions in a transforming labor market 11 4.1. Organizational Structure and Function 11 4.2. Role of Grass-root Trade Unions 12 4.3. Distinguishing Collective Contracts and Wage Bargaining 13 4.4. Independent Unions 14 4.5. NGO and Foreign Influences on Labor Relations 15 4.6. Are there “Real” Chinese Trade Unions? 16
5. Evaluating China’s industrial relations 17
6. Wages in China 18
7. The program of attraction of foreign experts in China 19 7.1 Chinese experience of attraction of foreign experts 20
Bibliography 22
1. Introduction
China’s labor market has undergone significant changes in the past twenty years. A more market- oriented labor market has emerged with the growing importance of the urban private sector, as state-owned enterprises (SOEs) have downsized. At the same time, rural employment growth has slowed, and migrants have sought jobs in the more dynamic coastal provinces. Despite the progress on reforms, a sizable surplus of labor still exists in the rural sector (about 150 million) and SOEs (about 10–11 million).
The main challenge facing China’s labor market in coming years is to absorb the surplus labor into quality jobs while adjusting to World Trade Organization (WTO) accession. This paper estimates that if GDP growth averages 7 percent and the employment elasticity is
Bibliography: 1. Pravda.ru, article name “КНР создает аналог ‘американской мечты’” by Sergey Vasilenkov, from February 10, 2012 2 3. The Wall Street Journal, article name “China 's Labor Market Tightens”, by TOM ORLIK, August 23, 2012 4 5. ACFTU (2007), Chinese Trade Unions Statistics Yearbook 2006. China Statistics Press. 6. Dong, X. (2004). The Changing Wage Structures in the 1990s: A Comparison between Rural and Urban Enterprises in China. paper presented at the International Research Conference on 6 7 8. Ge, Y. (2007). What Do Unions Do in China. Available at SSRN: http://ssrn.com/abstract=1031084 9 10. Knight, J. & Song, L. (2005). Towards a Labour Market in China. Oxford University Press. 11. Meng, X. (2000). Labour Market Reform In China. Cambridge University Press. 12. Sek, H.N. and Warner, M. (1998). China’s Trade Unions and Management. St. Martin’s Press. 13. Stiglitz, J. (1996). Some Lessons from the East Asian Miracle. World Bank Research Observer, Oxford University Press, Vol. 11(2), pages 151-77. 14. Yueh, L.Y. (2004). Wage Reforms in China During the 1990s. Asian Economic Journal 15