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The Emergence of a New ‘Socialist’ Market Labour Regime in China

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  • Jutta Hebel

    ()
    (Institute of Rural Development, Georg August University Göttingen)

  • Günter Schucher

    ()
    (GIGA Institute of Asian Affairs)

Abstract

China’s transition to a market economy has been a process of basic institutional changes and institution building. The institutional change from a socialist labour regime (SLR) as one of the backbones upholding the traditional leninist system to a new ‘socialist’ market labour regime (SMLR) became particularly important for the success of economic and political reforms. This analysis is based on the analytical framework of regimes and makes use of the idea of path dependence. An ensemble of institutions, mutually interconnected and influencing each other, forms the regime and shapes its trajectory. Six institutions are identified to constitute the employment regime: (1) the system of social control, (2) the production system, (3) the system of industrial relations, (4) the welfare system, (5) the family order, and (6) the educational system. The SMLR is still characterised by its socialist past and differs from other varieties of transformation labour regimes and bears little resemblance to labour regimes in Western market economies.

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Bibliographic Info

Paper provided by GIGA German Institute of Global and Area Studies in its series GIGA Working Paper Series with number 39.

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Length: 45 pages
Date of creation: Dec 2006
Date of revision:
Handle: RePEc:gig:wpaper:39

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Keywords: China; institutional change; transition; labour market; employment regime; path dependence theory; ASEAN; Mercosur; CMA;

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  1. Rolf Geffken, 2003. "Arbeitsrecht in China: Soft-Law oder Steuerung? (Teil 1)," Journal of Current Chinese Affairs - China aktuell, Institute of Asian Studies, GIGA German Institute of Global and Area Studies, Hamburg, Institute of Asian Studies, GIGA German Institute of Global and Area Studies, Hamburg, vol. 32(10), pages 1241-1253.
  2. Simon Clarke & Chang-Hee Lee & Qi Li, 2004. "Collective Consultation and Industrial Relations in China," British Journal of Industrial Relations, London School of Economics, London School of Economics, vol. 42(2), pages 235-254, 06.
  3. Milan Vodopivec, 1991. "The Labor Market and the Transition of Socialist Economies," Comparative Economic Studies, Palgrave Macmillan, Palgrave Macmillan, vol. 33(2), pages 123-158, July.
  4. Kornai, Janos, 1986. "The Soft Budget Constraint," Kyklos, Wiley Blackwell, Wiley Blackwell, vol. 39(1), pages 3-30.
  5. Pranab Bardhan, 2005. "Institutions matter, but which ones?," The Economics of Transition, The European Bank for Reconstruction and Development, The European Bank for Reconstruction and Development, vol. 13(3), pages 499-532, 07.
  6. Selden, Mark & You, Laiyin, 1997. "The reform of social welfare in China," World Development, Elsevier, Elsevier, vol. 25(10), pages 1657-1668, October.
  7. Page, Scott E., 2006. "Path Dependence," International Quarterly Journal of Political Science, now publishers, now publishers, vol. 1(1), pages 87-115, January.
  8. Katrin Willmann & Günter Schucher, 2005. "Facts about and Development in the Rural Education of the PRC," Journal of Current Chinese Affairs - China aktuell, Institute of Asian Studies, GIGA German Institute of Global and Area Studies, Hamburg, Institute of Asian Studies, GIGA German Institute of Global and Area Studies, Hamburg, vol. 34(5), pages 10-15.
  9. Rolf Geffken, 2003. "Arbeitsrecht in China: Soft-Law oder Steuerung? (Teil 2)," Journal of Current Chinese Affairs - China aktuell, Institute of Asian Studies, GIGA German Institute of Global and Area Studies, Hamburg, Institute of Asian Studies, GIGA German Institute of Global and Area Studies, Hamburg, vol. 32(11), pages 1354-1364.
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