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“Distribution According to Work†: An Historical Analysis of the Incentive System in China’s State-Owned Sector

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  • Hao Qi

Abstract

This article analyzes the role of the incentive system in driving China’s economic transition. The reform of the incentive system during the late 1970s and early 1980s led to the abuse of material incentives. Changes in the incentive system led to recurrent inflation and squeezed profits. The state thus launched a series of reforms that commoditized labor power and divided cadres from workers, substantially weakening workers’ power and promoting China’s economic transition.

Suggested Citation

  • Hao Qi, 2018. "“Distribution According to Work†: An Historical Analysis of the Incentive System in China’s State-Owned Sector," Review of Radical Political Economics, Union for Radical Political Economics, vol. 50(2), pages 409-426, June.
    • Handle: RePEc:sae:reorpe:v:50:y:2018:i:2:p:409-426
    DOI: 10.1177/0486613416675620
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    References listed on IDEAS

    as
    1. Zheng Song & Kjetil Storesletten & Fabrizio Zilibotti, 2011. "Growing Like China," American Economic Review, American Economic Association, vol. 101(1), pages 196-233, February.
    2. 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.
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    More about this item

    Keywords

    incentive system; economic transition; distribution; socialism; Chinese economy;
    All these keywords.

    JEL classification:

    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence

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