How Does China's New Labor Contract Law Affect Floating Workers?
AbstractChina’s new Labor Contract Law took effect on January 2008 and required firms to give migrant workers written contracts, strengthened labor protections for workers and contained penalties for firms that did not follow the labor code. This paper uses survey data of migrant workers in the Pearl River Delta before and after the law and a retrospective question on when workers received their first labor contract to assess the effects of the law on labor outcomes. The evidence shows that the new law increased the percentage of migrant workers with written contracts, which in turn raised social insurance coverage, reduced the likelihood of wage arrears, and raised the likelihood that the worker had a union at their workplace.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 19254.
Date of creation: Jul 2013
Date of revision:
Note: LE LS
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Find related papers by JEL classification:
- J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
- J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
- J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
- K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-07-28 (All new papers)
- NEP-DEV-2013-07-28 (Development)
- NEP-LAB-2013-07-28 (Labour Economics)
- NEP-LMA-2013-07-28 (Labor Markets - Supply, Demand, & Wages)
- NEP-LTV-2013-07-28 (Unemployment, Inequality & Poverty)
- NEP-MIG-2013-07-28 (Economics of Human Migration)
- NEP-TRA-2013-07-28 (Transition Economics)
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