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The Impact of China’s New Labour Contract Law On Socioeconomic Outcomes for Migrant and Urban Workers

Author

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  • Zhiming Cheng
  • Russell Smyth
  • Fei Guo

Abstract

This paper examines the effect of having a labour contract on a range of employee outcomes (hours worked, social insurance coverage, subjective wellbeing and wages) for a sample of urban and migrant workers in China. A methodological contribution is that we use propensity score matching, which allows us to draw causal inferences about the relationship between having a labour contract and each of these variables. We find that the effect of having a labour contract on employee outcomes is generally large and larger than the findings in other studies suggest. As such, our results suggest that China’s Labour Contract Law, which has made signing labour contracts mandatory, has been effective in improving the outcomes for Chinese workers.

Suggested Citation

  • Zhiming Cheng & Russell Smyth & Fei Guo, 2013. "The Impact of China’s New Labour Contract Law On Socioeconomic Outcomes for Migrant and Urban Workers," Monash Economics Working Papers 51-13, Monash University, Department of Economics.
    • Handle: RePEc:mos:moswps:2013-51
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    File URL: http://www.buseco.monash.edu.au/eco/research/papers/2013/index.html
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    Citations

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    Cited by:

    1. You, Jing & Wang, Shaoyang, 2018. "Unemployment duration and job-match quality in urban China: The dynamic impact of 2008 Labor Contract Law," Economic Modelling, Elsevier, vol. 71(C), pages 220-233.
    2. Bayari, Celal, 2014. "Labour Management in China: Legislation, Stratification, and Wages," MPRA Paper 103454, University Library of Munich, Germany, revised 08 Nov 2014.
    3. Cheng, Zhiming & King, Stephen P. & Smyth, Russell & Wang, Haining, 2016. "Housing property rights and subjective wellbeing in urban China," European Journal of Political Economy, Elsevier, vol. 45(S), pages 160-174.
    4. Enying Zheng & Simon Deakin, 2016. "Pricing Labour Capacity: The Unexpected Effects of Formalizing Employment Contracts in China," Working Papers wp479, Centre for Business Research, University of Cambridge.
    5. Chen, Yiu Por (Vincent) & Zhang, Yuan, 2018. "A decomposition method on employment and wage discrimination and its application in urban China (2002–2013)," World Development, Elsevier, vol. 110(C), pages 1-12.
    6. Yeqing Huang & Fei Guo, 2017. "Welfare Programme Participation and the Wellbeing of Non-local Rural Migrants in Metropolitan China: A Social Exclusion Perspective," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 132(1), pages 63-85, May.
    7. Roland Cheo, 2017. "Migrant Workers and Workplace Bullying in Urban China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 132(1), pages 87-115, May.
    8. Qin Gao & Sui Yang & Fuhua Zhai & Yake Wang, 2017. "Social Policy Reforms and Economic Distances in China, 2002-2013," University of Western Ontario, Centre for Human Capital and Productivity (CHCP) Working Papers 201722, University of Western Ontario, Centre for Human Capital and Productivity (CHCP).
    9. Awaworyi Churchill, Sefa & Smyth, Russell, 2017. "Ethnic Diversity and Poverty," World Development, Elsevier, vol. 95(C), pages 285-302.
    10. Bayari, Celal, 2018. "Economy and Market in China: The State, Wage Labour and the Construction of the ‘China Price’," MPRA Paper 100900, University Library of Munich, Germany, revised 04 Mar 2018.
    11. Jie Li & Wangshuai Wang & Gong Sun & Zhou Jiang & Zhiming Cheng, 2018. "Supervisor–Subordinate Guanxi and Job Satisfaction Among Migrant Workers in China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 139(1), pages 293-307, August.

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