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Labour market inequality(In Sheldon, Kim, Li and Warner (eds.), China’s Changing

Workplace, London: Rouledge)

Fang Lee CookeRMIT University, Melbourne

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Overview

Characteristics of the labour market: The extent of informal employment and reasons for

growth Roles of different institutional actors (e.g.

employment agencies, TU)

Forms of inequality and labour market outcomes Urban residents v. rural migrants local v. non-local residents with urban residential

status Men v. women Single v. married women

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Characteristics of the labour market Characteristics of the labour market

The development of the labour market (L/M)

1. A highly regulated/controlled L/M through administrative policy during the state planned economy period

2. Deregulating period 1980s – mid-2000s with rural migrant workers and laid-off SOE workers saturating in the L/M

3. Mid-2000 with the promulgation of three labour-related laws

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Characteristics of the L/M (cont…)

Growth of informal employment

A consequence of mobility of rural labour and state-sector retrenchment

Definition of informal employment debatable

An estimated figure of 150 million in this mode of employment – making up 20% of total employment

Informal employment a key source of L/M inequality

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Characteristics of the L/M (cont…)

Employment agencies as an active L/M institution

Rapid growth of informal employment employment agencies – a dumping site

In 2001, there were 26,793 employment agencies; by 2007, the number had increased to 37,897

Two-thirds of them funded by the local governments – intricate relationship with local governments

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Characteristics of the L/M (cont…)

TU branches provide a number of functions in the labour market:

Organizing & providing training for unemployed workers

Disseminating employment information Promoting legal awareness Providing legal aids to workers Monitoring labour standards &

participating in labour disputes mediation & arbitration

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Characteristics of the L/M (cont…)

Major problems with TUs

Lack of legal competence

Lack of resources

Low unionisation in private firms

Lack of legitimacy in representing the workforce

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Forms of inequality and L/M outcomes for different groups of workers

Types of workers affected Forms of inequality Gender segregation and discrimination Women in the state-owned

sector

Disproportionally laid off Inaccessibility to certain professional

groups and career progression Wage discrimination

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Table 13.2 Proportion (%) of female employees by ownership and sector and annual average wage for all employees in urban units (end of 1995 and 2007)

Proportion(%) of female employment by ownership and sector in urban units

Total State ownership Collective ownership Other ownership

Annual average wage for all employees in urban units (yuan) Item

1995 2007 1995 2007 1995 2007 1995 2007 1995 2007

National Total 38.6 37.8 36.1 37.1 44.6 35.4 48.3 39.0 5,500 24,721

Farming, Forestry, Animal Husbandry, Fishery 37.6 36.9 37.8 37.1 31.9 26.2 37.2 36.6 3,522 10,847

Mining & Quarrying 25.9 20.5 24.4 22.0 42.1 24.7 22.8 18.9 5,757 28,185

Manufacturing 45.2 43.1 40.9 32.8 53.1 43.3 49.7 45.1 5,169 21,144

Electricity, Gas & Water Production & Supply 31.4 29.9 31.5 30.3 32.1 31.5 28.8 29.0 7,843 33,470

Construction 19.4 13.6 20.7 15.6 17.8 14.8 14.2 12.3 5,785 18,482

Traffic, Transport, Storage and Post 26.5 27.2 25.9 26.7 29.4 31.3 24.2 27.9 6,948 27,903

Wholesale & Retail and Hotel & Catering* 46.3

45.1 54.2

44.9

37.4 53.8

47.5 41.4 58.4

56.4 51.2 54.1

4,248 21,074 17,046

Finance 40.0 49.5 39.3 46.7 41.9 43.4 46.0 54.5 7,376 44,011

Real Estate 33.7 33.6 34.1 34.6 33.2 34.8 31.9 33.2 7,330 26,085

Social Welfare** 44.1 49.7 43.0 49.0 55.1 55.3 59.0 61.7 5,860 24,061

Healthcare** 56.9 60.3 58.1 60.8 49.7 55.3 57.8 62.0 5,860 28,088

Education** 41.9 49.2 41.8 49.1 48.9 51.4 42.5 51.9 5,435 25,908

Culture and Art** 40.1 46.0 40.2 46.2 39.2 40.7 42.6 45.1 5,435 24,795

Governmental & Party Agencies, Social Organisations

22.6 27.6 22.5 27.5 35.0 41.7 30.0 33.8 5,526 27,731

Sources: compiled from China Statistical Yearbook 1996: 101-2; China Labour Statistical Yearbook 2008: 20-2, China Statistical Yearbook 2008, pp. 141-3.

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Types of workers affected

Forms of inequality

Against age Young workers Older workers

Recruitment discrimination due to

lack of experience Disproportionally laid off Age bar in recruitment More likely to be forced into informal

employment

Forms of inequality and L/M outcomes for different groups of workers (cont…)

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Forms of inequality and L/M outcomes for different groups of workers (cont…)

Types of workers affected

Forms of inequality

Residential status Rural migrant workers

Confined to informal employment

and to certain industrial sectors and occupations (e.g. construction, manufacturing, catering, community services)

Poor employment terms and conditions

Inaccessibility to social security Job insecurity

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Forms of inequality and L/M outcomes for different groups of workers (cont…)

Types of workers affected Forms of inequality Gender and age Women in the state-owned sector Women in privately-owned

/foreign-funded manufacturing plants

Earlier retirement age Age bar in recruitment

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Forms of inequality and L/M outcomes for different groups of workers (cont…)

Types of workers affected Forms of inequality Gender and residential status Rural female migrant workers Female university graduates

with non-local residential status

Secondary earner of the migrant

family Recruitment discrimination

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Summary and conclusions

L/M inequality has increased in the process of marketisation and privatisation

Inequality exists in access to employment, employment security, training and career advancement, social security and equitable pay across different groups of workers

Women and migrant workers are the most disadvantaged groups in the L/M

Institutional weaknesses in L/M regulation and labour protection are responsible for much of the inequality

Thank you!