How has Economic Restructuring Affected China's Urban Workers?

Abstract

Using data from the China Urban Labour Survey conducted in five large Chinese cities at year end 2001, we quantify the nature and magnitude of shocks to employment and worker benefits during the period of economic restructuring from 1996 to 2001, and evaluate the extent to which adversely affected urban workers had access to public and private assistance. Employment shocks were large and widespread, and were particularly hard on older workers and women. During the period of economic restructuring, unemployment reached double figures in all sample cities and labour force participation declined by 8.9 per cent. Urban residents faced modest levels of wage and pension arrears, and sharp declines in health benefits. Public assistance programmes for dislocated workers had limited coverage, with most job-leavers relying upon private assistance to support consumption, mainly from other household members.