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The Emergence of a New ‘Socialist’ Market Labour Regime in China

Author

Listed:
  • Jutta Hebel

    () (Institute of Rural Development, Georg August University Göttingen)

  • Günter Schucher

    () (GIGA Institute of Asian Affairs)

Abstract

China’s transition to a market economy has been a process of basic institutional changes and institution building. The institutional change from a socialist labour regime (SLR) as one of the backbones upholding the traditional leninist system to a new ‘socialist’ market labour regime (SMLR) became particularly important for the success of economic and political reforms. This analysis is based on the analytical framework of regimes and makes use of the idea of path dependence. An ensemble of institutions, mutually interconnected and influencing each other, forms the regime and shapes its trajectory. Six institutions are identified to constitute the employment regime: (1) the system of social control, (2) the production system, (3) the system of industrial relations, (4) the welfare system, (5) the family order, and (6) the educational system. The SMLR is still characterised by its socialist past and differs from other varieties of transformation labour regimes and bears little resemblance to labour regimes in Western market economies.

Suggested Citation

  • Jutta Hebel & Günter Schucher, 2006. "The Emergence of a New ‘Socialist’ Market Labour Regime in China," GIGA Working Paper Series 39, GIGA German Institute of Global and Area Studies.
  • Handle: RePEc:gig:wpaper:39
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    References listed on IDEAS

    as
    1. Milan Vodopivec, 1991. "The Labor Market and the Transition of Socialist Economies," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 33(2), pages 123-158, July.
    2. Rolf Geffken, 2003. "Arbeitsrecht in China: Soft-Law oder Steuerung? (Teil 1)," Journal of Current Chinese Affairs - China aktuell, Institute of Asian Studies, GIGA German Institute of Global and Area Studies, Hamburg, vol. 32(10), pages 1241-1253.
    3. Pranab Bardhan, 2005. "Institutions matter, but which ones?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 13(3), pages 499-532, July.
    4. Simon Clarke & Chang-Hee Lee & Qi Li, 2004. "Collective Consultation and Industrial Relations in China," British Journal of Industrial Relations, London School of Economics, vol. 42(2), pages 235-254, June.
    5. Kong, Tat Yan, 2006. "Globalization and Labour Market Reform: Patterns of Response in Northeast Asia," British Journal of Political Science, Cambridge University Press, vol. 36(02), pages 359-383, April.
    6. János Kornai, 2014. "The soft budget constraint," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 64(supplemen), pages 25-79, November.
    7. Selden, Mark & You, Laiyin, 1997. "The reform of social welfare in China," World Development, Elsevier, vol. 25(10), pages 1657-1668, October.
    8. Page, Scott E., 2006. "Path Dependence," Quarterly Journal of Political Science, now publishers, vol. 1(1), pages 87-115, January.
    9. Katrin Willmann & Günter Schucher, 2005. "Facts about and Development in the Rural Education of the PRC," Journal of Current Chinese Affairs - China aktuell, Institute of Asian Studies, GIGA German Institute of Global and Area Studies, Hamburg, vol. 34(5), pages 10-15.
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    Cited by:

    1. Chris Nyland & Charmine E.J. Härtel & Thin Vu & Cherrie Jiuhua Zhu, 2015. "Hospital Numerical Flexibility and Nurse Economic Security in China and India," British Journal of Industrial Relations, London School of Economics, vol. 53(1), pages 136-158, March.

    More about this item

    Keywords

    China; institutional change; transition; labour market; employment regime; path dependence theory; ASEAN; Mercosur; CMA;

    JEL classification:

    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
    • P36 - Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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