1 Labour market inequality (In Sheldon, Kim, Li and Warner (eds.), China’s Changing Workplace, London: Rouledge) Fang Lee Cooke RMIT University, Melbourne

2 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

3 Characteristics of the labour market The development of the labour market (L/M) 1. 1.A highly regulated/controlled L/M through administrative policy during the state planned economy period 2. 2.Deregulating period 1980s – mid-2000s with rural migrant workers and laid-off SOE workers saturating in the L/M 3. 3.Mid-2000 with the promulgation of three labour-related laws

4 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

5 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

6 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

7 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

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

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

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

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

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

14 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

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