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Labor Reform in China: Crossing the River by Feeling the Stones

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  • Margaret Maurer-Fazio

Abstract

Chinese economic reform appears to be following the path of outgrowing rather than jettisoning the central plan, perhaps to reduce the risk of considerable urban unemployment and its potential for social instability. How has this strategy affected the development of a labor market in China? Under the pre-reform labor system, urban workers were assigned to jobs, left therefor a lifetime, and given nearly equal pay regardless of performance. Today, many redundant workers remain in state-owned enterprises. Housing and welfare reforms have proceeded slowly, leaving many obstacles in the path of job mobility. Despite the incomplete nature of the labor market reforms, change is profound. A labor market has emerged and, nascent as it may be, it is affecting behavior in significant ways.

Suggested Citation

  • Margaret Maurer-Fazio, 1995. "Labor Reform in China: Crossing the River by Feeling the Stones," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 37(4), pages 111-123, December.
    • Handle: RePEc:pal:compes:v:37:y:1995:i:4:p:111-123
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    Cited by:

    1. Connelly, Rachel & Maurer-Fazio, Margaret, 2016. "Left behind, at-risk, and vulnerable elders in rural China," China Economic Review, Elsevier, vol. 37(C), pages 140-153.
    2. Fleisher, Belton M. & Yin, Yong & Hills, Stephen M., 1997. "The role of housing privatization and labor-market reform in China's dual economy," China Economic Review, Elsevier, vol. 8(1), pages 1-17.
    3. Maurer-Fazio, Margaret, 1999. "Earnings and education in China's transition to a market economy Survey evidence from 1989 and 1992," China Economic Review, Elsevier, vol. 10(1), pages 17-40.
    4. Diana Weinhold & Paul J. Zak, 2005. "The Choice of Institutions: The Role of Risk and Risk-Aversion," Others 0508004, University Library of Munich, Germany.
    5. Keun Lee & Donghoon Hahn & Justin Lin, 2001. "China and the East Asian Model A 'Comparative Institutional Analysis'Perspective," Working Paper Series no41, Institute of Economic Research, Seoul National University.

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