Six central features of the Chinese labour market: A literature survey

Abstract

In this comprehensive analytical overview, the author pays particular attention to the changing structure of China's employment towards more private-sector jobs in urban areas; its rising wages and widening earnings inequality; the persistence of its hukou system, causing labour market discrimination, an urban labour shortage and a rural labour surplus; its more market-oriented wage structure, albeit with segmentation between firm ownership types; its relatively low unemployment; and the relatively weak role of its traditional labour market institutions, including minimum wages and trade unions. The aim is to contribute to the development of more suitable, China-specific theoretical models and sound policy analysis.