7 Labor Market Vulnerability in Urban China

Abstract

This chapter introduces recent developments in China's labor market. It tries to assess the vulnerability of the urban labor market by introducing a new method for measuring social security and job security. The chapter describes the vulnerability of jobs using the new tools developed, and observes variations in vulnerability across various groups of workers. The rural to urban migration has characterized the labor market over the past decades, along with rapid employment growth and economic transitioning. The informality characteristic of the urban labor market is mostly due to migrant workers. In general, recent reforms in labor market institutions are inclined towards stricter regulations with a focus on employment protection, job security, and formalizing employment. Job insecurity can be a source of vulnerability. Increasing the scope of social protection, especially for migrants, is of great importance to achieving inclusive growth under the current economic situation. Keywords: informality; labor market institutions; labor market vulnerability; migration; urban labor market