Embracing the Market: Entry into Self-Employment in Transitional China, 1978-1996
AbstractThis paper introduces labor market transition as an intervening process by which the macro institutional transition to a market economy alters social stratification outcome. Rather than directly addressing income distribution, it examines the pattern of workers’ entry into self-employment in reform-era China (1978-1996), focusing on rural-urban differences and the temporal trend. Analyses of data from a national representative survey in China show that education, party membership and cadre status all deter urban workers’ entry into self-employment, while education promotes rural workers’ entry into self-employment. As marketization proceeds, the rate of entry into self-employment increases in both rural and urban China, but urban workers are increasingly more likely to take advantages of the new market opportunities. In urban China, college graduates and cadres are still less likely to be involved in self-employment, but they are becoming more likely to do so in the later phase of reform. The diversity of transition scenarios is attributed to rural-urban differences in labor market structures.
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Bibliographic InfoPaper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number 512.
Length: 46 pages
Date of creation: 27 Sep 2002
Date of revision:
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More information through EDIRC
Market; Rural China; Self-employment; Transition; and Urban China;
Find related papers by JEL classification:
- J4 - Labor and Demographic Economics - - Particular Labor Markets
- J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-02-18 (All new papers)
- NEP-ENT-2003-02-18 (Entrepreneurship)
- NEP-GEO-2003-02-18 (Economic Geography)
- NEP-HIS-2003-02-18 (Business, Economic & Financial History)
- NEP-LAB-2003-02-18 (Labour Economics)
- NEP-TRA-2003-02-18 (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.:
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- Justin van der Sluis & Mirjam van Praag & Wim Vijverberg, 2003. "Entrepreneurship Selection and Performance," Tinbergen Institute Discussion Papers 03-046/3, Tinbergen Institute, revised 24 Sep 2004.
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