Corporate labor policies and practices during China's transition: An exploration of implications for social stratification

Abstract

Labor reform in post-socialist economies has the potential to shape the nature of emerging stratification systems in these countries in important ways. Yet researchers have not explored how labor policies and practices are changing. This paper describes changes in firm labor practices and policies in China and discusses how these are likely to affect the nature of stratification. I highlight differences between state-owned enterprises (SOEs) and non-SOEs to explore the role that firm ownership structure is likely to play in defining the future of inequality in these countries. I provide estimates from longitudinal (1994–1999) quantitative survey data on 800 Chinese SOEs and non-SOEs to examine current labor conditions in Chinese firms, characteristics of workers, and the nature of current hiring and termination practices.