Labour market regulations and informal employment in China

Abstract

Purpose – The purpose of this paper is to chart the sharp rise of informal employment in urban China in the last decade. It investigates the role of labour market regulations in shaping employment relations for those engaged in this form of employment and their employment outcome. It also examines various forms of organization and representation of these workers and the extent to which these mechanisms meet their needs.Design/methodology/approach – This paper draws on secondary and first‐hand empirical data. The secondary data come mainly from media sources and academic publications in China. The empirical data from interviews that the author has conducted with the labour authorities, trade union officials, workers, senior managers and owner CEOs of private firms in several cities.Findings – The paper concludes that the inadequacy of the function of employment agencies, the absence of a functioning social security system for workers in informal employment, and the lack of effective enforcement of employme...