| Abstract: |
This paper presents empirical evidence from household and firm survey data
collected during 2009-2010 on the implementation of the 2008 Labor Contract
Law and its effects on China's workers. The government and local labor bureaus
have made substantial efforts to enforce the provisions of the new law, which
has likely contributed to reversing a trend toward increasing informalization
of the urban labor market. Enforcement of the law, however, varies
substantially across cities. The paper analyzes the determinants of worker
satisfaction with the enforcement of the law, the propensity of workers to
have a labor contract, workers'awareness of the content of the law, and their
likelihood of initiating disputes. The paper finds that all of these factors
are highly correlated with the level of education, especially for migrants.
Although higher labor costs may have had a negative impact on manufacturing
employment growth, this has not led to an overall increase in aggregate
unemployment or prevented the rapid growth of real wages. Less progress has
been made in increasing social insurance coverage, although signing a labor
contract is more likely to be associated with participation in social
insurance programs than in the past, particularly for migrant workers. |