China's 2008 labor contract law : implementation and implications for China's workers
AbstractThis paper presents empirical evidence from household and firm survey data collected during 2009-2010 on the implementation of the 2008 Labor Contract Law and its effects on China's workers. The government and local labor bureaus have made substantial efforts to enforce the provisions of the new law, which has likely contributed to reversing a trend toward increasing informalization of the urban labor market. Enforcement of the law, however, varies substantially across cities. The paper analyzes the determinants of worker satisfaction with the enforcement of the law, the propensity of workers to have a labor contract, workers'awareness of the content of the law, and their likelihood of initiating disputes. The paper finds that all of these factors are highly correlated with the level of education, especially for migrants. Although higher labor costs may have had a negative impact on manufacturing employment growth, this has not led to an overall increase in aggregate unemployment or prevented the rapid growth of real wages. Less progress has been made in increasing social insurance coverage, although signing a labor contract is more likely to be associated with participation in social insurance programs than in the past, particularly for migrant workers.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 6542.
Date of creation: 01 Jul 2013
Date of revision:
Labor Markets; Labor Policies; Labor Standards; Work&Working Conditions; Labor Law;
Other versions of this item:
- Gallagher, Mary & Giles, John T. & Park, Albert & Wang, Meiyan, 2013. "China's 2008 Labor Contract Law: Implementation and Implications for China's Workers," IZA Discussion Papers 7555, Institute for the Study of Labor (IZA).
- J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
- J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
- J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
- J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation
- J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
- O - Economic Development, Technological Change, and Growth
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-07-28 (All new papers)
- NEP-CNA-2013-07-28 (China)
- NEP-DEV-2013-07-28 (Development)
- NEP-IUE-2013-07-28 (Informal & Underground Economics)
- NEP-LAB-2013-07-28 (Labour Economics)
- NEP-LMA-2013-07-28 (Labor Markets - Supply, Demand, & Wages)
- NEP-MIG-2013-07-28 (Economics of Human Migration)
- NEP-TRA-2013-07-28 (Transition Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Feldmann, Horst, 2009. "The unemployment effects of labor regulation around the world," Journal of Comparative Economics, Elsevier, vol. 37(1), pages 76-90, March.
- Amin, Mohammad, 2007.
"Labor regulation and employment in India's retail stores,"
Policy Research Working Paper Series
4314, The World Bank.
- Amin, Mohammad, 2009. "Labor regulation and employment in India's retail stores," Journal of Comparative Economics, Elsevier, vol. 37(1), pages 47-61, March.
- Kaplan, David S., 2008.
"Job creation and labor reform in Latin America,"
Policy Research Working Paper Series
4708, The World Bank.
- Richard B. Freeman, 2007.
"Labor Market Institutions Around the World,"
NBER Working Papers
13242, National Bureau of Economic Research, Inc.
- Richard B. Freeman, 2008. "Labor market institutions around the world," LSE Research Online Documents on Economics 19647, London School of Economics and Political Science, LSE Library.
- Richard Freeman, 2008. "Labor Market Institutions Around the World," CEP Discussion Papers dp0844, Centre for Economic Performance, LSE.
- Ahsan, Ahmad & Pagés, Carmen, 2008.
"Are All Labor Regulations Equal? Evidence from Indian Manufacturing,"
IZA Discussion Papers
3394, Institute for the Study of Labor (IZA).
- Ahsan, Ahmad & Pagés, Carmen, 2009. "Are all labor regulations equal? Evidence from Indian manufacturing," Journal of Comparative Economics, Elsevier, vol. 37(1), pages 62-75, March.
- Chen, Yu-Fu & Funke, Michael, 2008.
"China´s new labour contract law: no harm to employment?,"
SIRE Discussion Papers
2008-51, Scottish Institute for Research in Economics (SIRE).
- Chen, Yu-Fu & Funke, Michael, 2009. "China's new Labour Contract Law: No harm to employment?," China Economic Review, Elsevier, vol. 20(3), pages 558-572, September.
- Michael Funke & Yu-Fu Chen, 2009. "China's new labour contract law: No harm to employment?," Quantitative Macroeconomics Working Papers 20909b, Hamburg University, Department of Economics.
- Yu-Fu Chen & Michael Funke, 2008. "China's New Labour Contract Law:No Harm to Employment?," Dundee Discussion Papers in Economics 220, Economic Studies, University of Dundee.
- Chen, Yu-Fu & Funke, Michael, 2008. "China's new labour contract law: No harm to employment?," BOFIT Discussion Papers 29/2008, Bank of Finland, Institute for Economies in Transition.
- Fallon, Peter R. & Lucas, Robert E. B., 1993.
"Job security regulations and the dynamic demand for industrial labor in India and Zimbabwe,"
Journal of Development Economics,
Elsevier, vol. 40(2), pages 241-275, April.
- Peter R. Fallon & Robert E. B. Lucas, 1989. "Job Security Regulations and the Dynamic Demand for Industrial Labor in India and Zimbabwe," Boston University - Institute for Economic Development 2, Boston University, Institute for Economic Development.
- Djankov, Simeon & Ramalho, Rita, 2008.
"Employment Laws in Developing Countries,"
CEPR Discussion Papers
7097, C.E.P.R. Discussion Papers.
- Giles, John & Wang, Dewen & Park, Albert, 2013. "Expanding social insurance coverage in urban China," Policy Research Working Paper Series 6497, The World Bank.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).
If references are entirely missing, you can add them using this form.