China's 2008 Labor Contract Law: Implementation and Implications for China's Workers
This 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.
|Date of creation:||Aug 2013|
|Date of revision:|
|Publication status:||forthcoming in: Human Relations, 2015.|
|Contact details of provider:|| Postal: |
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
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.:
- 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, 2009. "China's new Labour Contract Law: No harm to employment?," China Economic Review, Elsevier, vol. 20(3), pages 558-572, September.
- 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.
- 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.
- 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).
- Richard Freeman, 2008.
"Labor Market Institutions Around the World,"
CEP Discussion Papers
dp0844, Centre for Economic Performance, LSE.
- 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 B. Freeman, 2007. "Labor Market Institutions Around the World," NBER Working Papers 13242, National Bureau of Economic Research, Inc.
- 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.
- 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.
- Djankov, Simeon & Ramalho, Rita, 2008.
"Employment Laws in Developing Countries,"
CEPR Discussion Papers
7097, C.E.P.R. Discussion Papers.
- Feldmann, Horst, 2009. "The unemployment effects of labor regulation around the world," Journal of Comparative Economics, Elsevier, vol. 37(1), pages 76-90, March.
- Kaplan, David S., 2008.
"Job creation and labor reform in Latin America,"
Policy Research Working Paper Series
4708, The World Bank.
- 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.
- Giles, John & Wang, Dewen & Park, Albert, 2013. "Expanding social insurance coverage in urban China," Policy Research Working Paper Series 6497, The World Bank.
- Almeida, Rita & Carneiro, Pedro, 2005. "Enforcement of labor regulation, informal labor, and firm performance," Policy Research Working Paper Series 3756, The World Bank.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp7555. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak)
If references are entirely missing, you can add them using this form.