fang lee cooke rmit university, melbourne
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Labour market inequality (In Sheldon, Kim, Li and Warner (eds.), China’s Changing Workplace, London: Rouledge). Fang Lee Cooke RMIT University, Melbourne. Overview. Characteristics of the labour market: The extent of informal employment and reasons for growth - PowerPoint PPT PresentationTRANSCRIPT
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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!