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Towards a Labour Market in China

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Author Info

  • Knight, John
  • Song, Lina

Abstract

The Chinese transition from an administered labour and wage system towards a properly functioning labour market is examined. China has a labour surplus economy par excellence and its labour institutions--spreading and disguising unemployment--have to be viewed in that light. A contrast is drawn between 'insiders' and 'outsiders', the former state-employed urban residents and the latter the rapidly growing numbers of private-sector employees, rural-urban migrants, and rural industry workers. The operation of market forces outside the urban state sector is assessed. The egalitarian urban wage structure is analysed, and the effects of the urban reforms on wages and unemployment are examined. Urban labour-market reform has not proceeded very far. The case for and the obstacles to further reform are investigated: there are economic advantages but political impediments. The problem is systemic and requires reform in other areas as well, giving rise to issues of sequencing. Copyright 1995 by Oxford University Press.

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Bibliographic Info

Article provided by Oxford University Press in its journal Oxford Review of Economic Policy.

Volume (Year): 11 (1995)
Issue (Month): 4 (Winter)
Pages: 97-117

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Handle: RePEc:oup:oxford:v:11:y:1995:i:4:p:97-117

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Web page: http://oxrep.oupjournals.org/

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Cited by:
  1. Knight, John & Yueh, Linda, 2004. "Job mobility of residents and migrants in urban China," Journal of Comparative Economics, Elsevier, vol. 32(4), pages 637-660, December.
  2. Knight, John & Deng, Quheng & Li, Shi, 2011. "The puzzle of migrant labour shortage and rural labour surplus in China," China Economic Review, Elsevier, vol. 22(4), pages 585-600.
  3. Michele Bruni & Claudio Tabacchi, 2011. "Present and Future of the Chinese Labour Market," Center for the Analysis of Public Policies (CAPP) 0083, Universita di Modena e Reggio Emilia, Dipartimento di Economia Politica.
  4. Lohmar, Bryan & Diao, Xinshen & Somwaru, Agapi & Tuan, Francis C. & Chan, Kitty Kay, 2003. "Softening the Impact of Adjustment to Reform: The China Experience," Policy Reform and Adjustment Workshop, October 23-25, 2003, Imperial College London, Wye Campus 15733, International Agricultural Policy Reform and Adjustment Project (IAPRAP).
  5. repec:bwp:bwppap:15211 is not listed on IDEAS
  6. John Knight, 2007. "China, South Africa and the Lewis Model," CSAE Working Paper Series 2007-12, Centre for the Study of African Economies, University of Oxford.
  7. John Knight & Li Shi & Deng Quheng, 2008. "Education and the Poverty Trap in Rural China," CSAE Working Paper Series 2008-02, Centre for the Study of African Economies, University of Oxford.
  8. Lohmar, Bryan & Rozelle, Scott & Zhao, Changbao, 2000. "The Rise Of Rural-To-Rural Labor Markets In China," Working Papers 11955, University of California, Davis, Department of Agricultural and Resource Economics.
  9. John Knight & Li Shi & Deng Quheng, 2008. "The Curious Case of Son Preference and Household Income in Rural China," CSAE Working Paper Series 2008-03, Centre for the Study of African Economies, University of Oxford.

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