Unemployment in China: Economy, Human Resources and Labour Markets (Routledge Contemporary China Series) Review

Unemployment in China: Economy, Human Resources and Labour Markets (Routledge Contemporary China Series)
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Unemployment in China: Economy, Human Resources and Labour Markets (Routledge Contemporary China Series) ReviewWhy should the world care about unemployment (shiye) in China? The Chinese produce a lot of what you eat (consume), and 1.4 billion Chinese eat a lot of what the world produces. Those are direct implications. Indirectly China currently ranks among the top destinations of foreign direct investment and technology. Hence, good economic performance is good employment opportunities, not only for Chinese but the world as well.
However, with the changing structure of the Chinese economy, unemployment fell between 1980 and 1985, before it picked up with the restructuring and semi-privatization of state-owned enterprises (SOEs). Urban labor received the hardest punch and income inequality in China is currently the highest in Asia and rising. Thus, China is an exception to the Asian growth with equity miracles of the 1990s.
The first two chapters of the book describe the history of unemployment and its macro-dimensions. After that the discussion moves on to the implications of unemployment on labor relations, especially the weakening effect downsizing has had on trade unions. About the "gender dimension" the book finds that there is "no evidence that women have borne a disproportionate share of the job losses at the most aggregate level" (p. 7) in SOEs, but they have suffered in privately owned enterprises. The net impact of unemployment on women was zero to negative. Unemployment also had large psychological impacts, especially among the official elite who felt demoted socially, and the less educated who were practically excluded from the modern job market. The psychological effect disrupted spousal relationships, a very big disturbance since the family is the centre of harmony in a traditional Chinese society. Associated with the psychological effects of unemployment were increased job-searching and skill-upgrading costs. These are the effects of urban unemployment.
Rural unemployment is still hard to measure in China, and is oftentimes masked by nice terms like "surplus labor", "underemployment", and "hidden unemployment". If all these are taken to be "unemployment", rural joblessness is also a big problem in China.
The last five chapters of the book look at labor markets in China. They focus on Shanghai, the Chinese embedded economies of Hong Kong and Macao, and on eight Chinese steel companies including Nanjing Steel. Generally speaking unemployment is not as a serious problem for these economies as is income inequality. On average "shiye" declined pre-reform and increased significantly post-reform.
A very good book for any one interested in the global economy and China's place in it.
Amavilah, Author
Modeling Determinants of Income in Embedded Economies
ISBN: 1600210465
Unemployment in China: Economy, Human Resources and Labour Markets (Routledge Contemporary China Series) Overview

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