Forging a Labor Market in Urban China

D uring the last two decades of the twentieth century, China underwent a dramatic transition from a planned to a market economy, and the influence of market forces on the allocation of resources in many economic realms substantially increased. One of the most important institutional changes involved in the transition was the forging of a unified national labor market. That change, however, proceeded at a much slower pace than did other aspects of China's economic reform (Hu and Li 1993, 147). Institutionally, China's labor market is divided into two parts: rural and urban. Beginning in 1952, a nationwide household registration system (hukou) was enforced in urban China. Peasants were bound to their place of birth and forbidden to work or reside in cities until the beginning of the reform era in 1979 (Cheng and Selden 1997; Mallee 1995). As the reform proceeds, many rural residents have entered cities to seek work; their numbers grew rapidly throughout the 1980s and 1990s. Nevertheless, the rural-urban segregation of China's labor market is far from abolished

China · Development economics · Economic reform · Economic system · Economics · Economy · Geography · Pace · Planned economy · Political science · Transition (genetics · Work (physics · China's Socioeconomic Reforms and Governance · Engineering

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