Abstract
Before the reforms began in the late 1970s, there was no such thing as a labour market in China. The allocation of jobs, just as the rules governing wages in the state enterprises, were fixed by the Central Plan; and one of the key functions of the state enterprises was to provide work for the entire population of working age. The pay structure was characterised by a rigid system for determining wages and salaries; these were kept at a low level and mostly based on an egalitarian principle, p...
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