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Employment Policy in China
Dr Jack Chan
To examine key features of employment policy and its effects in the Mao era
To discuss the evolution of employment policy during market transition
To analyze the latest employment policies
To critique the interaction of state, market, and labour in employment policy
To analyze the position of Chinese Labour under Global Capitalism
2
Objectives
Universal employment policy (全民就業政策)
Right to work guaranteed for all labourers
Job assignment system in urban areas
State monopoly of labour resources allocation
No job choice for workers
No right of refusal by the individual or work unit
Underemployment, over-manning and labour hoarding by work units (danwei 單位)
3
Employment Policy under Mao
Workers enjoyed life tenure (iron rice-bowl 鐵飯碗)
No work incentive
Comprehensive welfare (wages, housing, health care, social security, welfare amenities provided by work units)
High costs to work units and the state, total dependence of workers on danwei, deters labour mobility
4
Employment Policy under Mao
Work allocation in People’s Communes
All rural labourers assigned to people’s communes /production brigades /teams
Peasants lost their economic sovereignty
Work assigned by production teams and use of work points (工分) as basis of allocation
Poor work incentive and productivity
Egalitarian distribution of grain and income
No work incentive
No right to move to urban areas
Stunted life chances, low income
5
Employment Policy under Mao
Employment practice reforms
Replaced life tenure with labour contract system from 1986 - End of iron rice-bowl
Legalize lay offs - Massive redundancies
Permit early retirement - Discrimination against older workers and women
6
Employment Policy in Transition (mid-1980s to 1990s)
Creation of labour markets
Encourage labour mobility
Delink social security and welfare benefits from enterprises - Establish Social Insurance Bureaus (社會保險局) at city/county level)
Provide employment training
7
Employment Policy
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