How has Economic Restructuring Affected China’s Urban Workers?

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How has Economic Restructuring Affected China’s Urban Workers?

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John Giles ()
Albert Park ()
Fang Cai ()

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Abstract

Using data from the China Urban Labor Survey conducted in five large Chinese cities at year end 2001, we quantify the nature and magnitude of shocks to employment and worker benefits during the period of economic structuring from 1996 to 2001, and evaluate the extent to which adversely affected urban workers had access to public and private assistance. Employment shocks were large and widespread, and were particularly hard on older workers and women. Unemployment reached double digits in all sample cities and labor force participation declined by 8 percent. Urban residents faced modest levels of wage and pension arrears, and sharp declines in health benefits. Public assistance programs for dislocated workers had limited coverage, with most job-leavers relying upon private assistance to support consumption, mainly from other household members.

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Publisher Info
Paper provided by William Davidson Institute at the University of Michigan Stephen M. Ross Business School in its series William Davidson Institute Working Papers Series with number 2003-628.

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Length: 60 pages
Date of creation: 01 Oct 2003
Date of revision:
Handle: RePEc:wdi:papers:2003-628

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Find related papers by JEL classification:
J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Private Pensions
J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
J65 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment Insurance; Severance Pay; Plant Closings
O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
P30 - Economic Systems - - Socialist Institutions and Their Transitions - - - General

This paper has been announced in the following NEP Reports:

NEP-ALL-2004-04-18 (All new papers)
NEP-LAB-2004-04-18 (Labour Economics)
NEP-TRA-2004-04-18 (Transition Economics)

References listed on IDEAS
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Giles, John & Park, Albert & Zhang, Juwei, 2005. "What is China's true unemployment rate?," China Economic Review, Elsevier, vol. 16(2), pages 149-170. [Downloadable!] (restricted)
Appleton, Simon & Knight, John & Song, Lina & Xia, Qingjie, 2002. "Labor retrenchment in China: Determinants and consequences," China Economic Review, Elsevier, vol. 13(2-3), pages 252-275. [Downloadable!] (restricted)
Jan Svejnar, 2002. "Labor Market Flexibility in Central and East Europe," William Davidson Institute Working Papers Series 496, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
Yuanzheng Cao & Yingyi Qian & Barry R. Weingast, 1999. "From federalism, Chinese style to privatization, Chinese style," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(1), pages 103-131, March. [Downloadable!] (restricted)
Lokshin, Michael M. & Yemtsov, Ruslan, 2001. "Household strategies for coping with poverty and social exclusion in post-crisis Russia," Policy Research Working Paper Series 2556, The World Bank. [Downloadable!]
Tito Boeri & Katherine Terrell, 2002. "Institutional Determinants of Labor Reallocation in Transition," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 51-76, Winter. [Downloadable!] (restricted)
Other versions:
- Tito Boeri & Katherine Terrell, 2001. "Institutional Determinants of Labor Reallocation in Transition," William Davidson Institute Working Papers Series 384, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
Melvin Stephens, 2001. "The Long-Run Consumption Effects Of Earnings Shocks," The Review of Economics and Statistics, MIT Press, vol. 83(1), pages 28-36, February. [Downloadable!] (restricted)
Tito Boeri, 1999. "Transition with Labour Supply," William Davidson Institute Working Papers Series 274, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
Other versions:
- Boeri, Tito, 2001. "Transition with Labour Supply," IZA Discussion Papers 257, Institute for the Study of Labor (IZA). [Downloadable!]
Dong, Xiao-Yuan & Putterman, Louis, 2003. "Soft budget constraints, social burdens, and labor redundancy in China's state industry," Journal of Comparative Economics, Elsevier, vol. 31(1), pages 110-133, March. [Downloadable!] (restricted)

Full references

Cited by:
(explanations, 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.)

Li, Hongbin & Rosenzweig, Mark & Zhang, Junsen, 2008. "Altruism, Favoritism, and Guilt in the Allocation of Family Resources: Sophie's Choice in Mao's Mass Send Down Movement," Working Papers 54, Yale University, Department of Economics. [Downloadable!]
Other versions:
- Hongbin Li & Mark Rosenzweig & Junsen Zhang, 2008. "Altruism, Favoritism, and Guilt in the Allocuation of Family Resources: Sophie's Choice in Mao's Mass Send Down Movement," Working Papers 965, Economic Growth Center, Yale University. [Downloadable!]
Gordon Betcherman & Niels-Hugo Blunch, 2008. "The limited job prospects of displaced workers: evidence from two cities in China," Economic Change and Restructuring, Springer, vol. 41(3), pages 187-207, September. [Downloadable!] (restricted)
Jane Golley & Rod Tyers, 2006. "Demographic Change and the Labour Supply Constraint," ANUCBE School of Economics Working Papers 2006-467, Australian National University, College of Business and Economics, School of Economics. [Downloadable!]
Bjorn Gustafsson & Deng Quheng, 2007. "Social Assistance Receipt and its Importance for Combating Poverty in Urban China," IZA Discussion Papers 2758, Institute for the Study of Labor (IZA). [Downloadable!]
Meng, Xin & Gong, Xiaodong & Wang, Youjuan, 2004. "Impact of Income Growth and Economic Reform on Nutrition Intake in Urban China: 1986-2000," IZA Discussion Papers 1448, Institute for the Study of Labor (IZA). [Downloadable!]
Till Bärnighausen & David E. Bloom, 2009. "Financial incentives for return of service in underserved areas: a systematic review," PGDA Working Papers 1106, Program on the Global Demography of Aging. [Downloadable!]
Sylvie Démurger & Martin Fournier & Shi Li & Zhong Wei, 2008. "Economic liberalization with rising segmentation in China's urban labor market," Post-Print halshs-00353336_v1, HAL. [Downloadable!]
Other versions:
- Sylvie Démurger & Martin Fournier & Li Shi & Wei Zhong, 2006. "Economic liberalization with rising segmentation on China’s urban labor market," Working Papers 46, ECINEQ, Society for the Study of Economic Inequality. [Downloadable!]
- Sylvie Démurger & Martin Fournier & Li Shi & Wei Zhong, 2006. "Economic Liberalization with Rising Segmentation in China's Urban Labor Market," Asian Economic Papers, MIT Press, vol. 5(3), pages 58-101, June. [Downloadable!] (restricted)
Giles, John & Park, Albert & Wang, Meiyan, 2008. "The great proletarian cultural revolution, disruptions to education, and returns to schooling in urban China," Policy Research Working Paper Series 4729, The World Bank. [Downloadable!]
Meng, Xin & Gregory, Robert & Wan, Guanghua, 2006. "China Urban Poverty and its Contributing Factors, 1986-2000," Working Papers RP2006/133, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]

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