IDEAS home Printed from
   My bibliography  Save this paper

Flexibility and Security Changes in the Labor Market and Consumption-led Growth in China


  • Chengnan Yan


The purpose of this paper is to determine the conditions necessary for Chinese economic growth regime change, that is, the change from export-led to consumption-led growth. Although there are different approaches to this difficult transformation, in this paper, we consider the problem in terms of the interrelationship between institutional reform and flexibility and security changes in the labor market. Given that one-sided growth in flexibility without a parallel increase in security support in the labor market has restricted domestic consumption demand growth, we analyze these changes and interactions using the flexicurity framework, in which flexibility and security in the labor market are increased simultaneously. We compare the success of the flexicurity strategies in Denmark and the Netherlands and find three key differences between them and the Chinese labor market flexibility and security changes. First, the main change is that, in China, numerical and functional flexibility were increased and employment security was decreased to a large extent. Second, the changes depend more on institutional reform and policy decisions by the government than on labor/industrial negotiations. Third, the role of social security systems (mainly unemployment insurance) is limited, and thus, income security decreases.

Suggested Citation

  • Chengnan Yan, 2010. "Flexibility and Security Changes in the Labor Market and Consumption-led Growth in China," Discussion papers e-09-005, Graduate School of Economics Project Center, Kyoto University.
  • Handle: RePEc:kue:dpaper:e-09-005

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Amable, Bruno, 2003. "The Diversity of Modern Capitalism," OUP Catalogue, Oxford University Press, number 9780199261147.
    Full references (including those not matched with items on IDEAS)


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kue:dpaper:e-09-005. 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: (Graduate School of Economics Project Center). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.