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China’s 2008 labor contract law implementation and implications for china’s workers

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China’s 2008 labor contract law implementation and implications for china’s workers

Public Disclosure AuthorizedPublic Disclosure AuthorizedPolicy Research Working Paper6542China’s 2008 Labor Contract LawImplementation and Implication

China’s 2008 labor contract law implementation and implications for china’s workers ns for China’s WorkersMary GallagherJohn GilesAlbert ParkMeiyan WangThe World BankDevelopment Research GroupHuman Development and Public Services Team

41456Policy Research Working Paper 6542AbstractThis paper presents empirical evidence from household and firm survey data collected during 2009-2010 o China’s 2008 labor contract law implementation and implications for china’s workers

n (he implementation of the 2008 Labor Contract Law and its effects on Chinas workers. The government and local labor bureaus have made substantial ef

China’s 2008 labor contract law implementation and implications for china’s workers

forts to enforce (he provisions of the new law, which has likely contributed to reversing a trend toward increasing informalization of the urban labor

Public Disclosure AuthorizedPublic Disclosure AuthorizedPolicy Research Working Paper6542China’s 2008 Labor Contract LawImplementation and Implication

China’s 2008 labor contract law implementation and implications for china’s workers rcement of the law, the propensity of workers to have a labor contract, workers’ awareness of the content of the law,and their likelihood of initiatin

g disputes. The paper finds that all of these factors are highly correlated with the level of education, especially for migrants. Although higher labo China’s 2008 labor contract law implementation and implications for china’s workers

r costs may have had a negative impact on manufacturing employment growth, (his has not led to an overall increase in aggregate unemployment or preven

China’s 2008 labor contract law implementation and implications for china’s workers

ted the rapid growth of real wages. Less progress has been made in increasing social insurance coverage, although signing a labor contract is more lik

Public Disclosure AuthorizedPublic Disclosure AuthorizedPolicy Research Working Paper6542China’s 2008 Labor Contract LawImplementation and Implication

China’s 2008 labor contract law implementation and implications for china’s workers Human Development and Public Services Team, Development Research Group. It is pan of a larger effort by the World Bank to provide open access to its

research and make a contribution to development policy discussions around the world. Policy Research Working Papers arc also posted on the Web at http China’s 2008 labor contract law implementation and implications for china’s workers

://ccon.worldbank.org. The authors may be contacted at jgiles(S>worldbank.org.lhe fyliey Reteanh Working 1‘aper Serio ditteminaiet the finding! of uvr

China’s 2008 labor contract law implementation and implications for china’s workers

k in progreti 10 encourage the exchange of ideas about development iituet. An objective of the tenet it to get the finding! out quickly. even if the p

Public Disclosure AuthorizedPublic Disclosure AuthorizedPolicy Research Working Paper6542China’s 2008 Labor Contract LawImplementation and Implication

China’s 2008 labor contract law implementation and implications for china’s workers OH! expreaed in chit paper are entirely thoie of the author!. ihey do not necetfarily repreient the view of the International Blink for Reconurnction

and DerelopmentlWorld Bank and lit affiliated organ leattom. or tho China’s 2008 labor contract law implementation and implications for china’s workers

roduced by the Research Support TeamChina's 2008 Labor Contract Law:Implementation and Implications for China's Workers’Mary Gallagher* *. John Giles*

China’s 2008 labor contract law implementation and implications for china’s workers

. Albert Park* and Meiyan Wang*Key Words: Social Insurance. Informal Sector. Labor Regulations. Migration. Gender. ChinaJEL Codes: J08. J16. J28. J41.

Public Disclosure AuthorizedPublic Disclosure AuthorizedPolicy Research Working Paper6542China’s 2008 Labor Contract LawImplementation and Implication

China’s 2008 labor contract law implementation and implications for china’s workers Multi-Donor Trust Fund managed by the Social Protection and Labor Team of the Human Development Network, and the Knowledge for change Program managed

by the Development Economics Research Group. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors China’s 2008 labor contract law implementation and implications for china’s workers

. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations

China’s 2008 labor contract law implementation and implications for china’s workers

, or those of the Executive Directors of the World Bank or the governments they represent.*Mary Gallagher (metg@umich.edu) is an Associate Professor o

Public Disclosure AuthorizedPublic Disclosure AuthorizedPolicy Research Working Paper6542China’s 2008 Labor Contract LawImplementation and Implication

China’s 2008 labor contract law implementation and implications for china’s workers nter for Comparative Political Studies at the Institute for Social Research.‘John Giles (jgiles@worldbank.org) is Senior Labor Economist in the Develo

pment Research Group at the World Bank (Washington, DC) and Research Fellow of the Institute for the Study of Labor (IZA).’Albert Park (albertpark@ust China’s 2008 labor contract law implementation and implications for china’s workers

.hk) is chair Professor of Social Science and Professor of Economics at Hong Kong University of Science and Technology and Research Fellow of the Inst

China’s 2008 labor contract law implementation and implications for china’s workers

itute for the Study of Labor (IZA) and the Center for Economic Policy Research (CEPR).*Meiyan Wang (wangmycass(ggmailxom) is an Associate Professor at

Public Disclosure AuthorizedPublic Disclosure AuthorizedPolicy Research Working Paper6542China’s 2008 Labor Contract LawImplementation and Implication

China’s 2008 labor contract law implementation and implications for china’s workers ations for Chinese Workers1. IntroductionOn January 1. 2008. China implemented a new Labor Contract Law with provisions widely considered to be highly

protective of workers. The passage of the new Law reflected the government’s recognition of the rising aspirations and expectations of China’s worker China’s 2008 labor contract law implementation and implications for china’s workers

s and the political importance of ensuring fair employment practices to avoid labor unrest. Prior to the Law’s passage, however, business leaders and

China’s 2008 labor contract law implementation and implications for china’s workers

many commentators inside and outside of China expressed concern that the Law would increase labor costs of enterprises, reduce employment, and undermi

Public Disclosure AuthorizedPublic Disclosure AuthorizedPolicy Research Working Paper6542China’s 2008 Labor Contract LawImplementation and Implication

China’s 2008 labor contract law implementation and implications for china’s workers c intellectuals and receiving significant media attention. In 2006. the National People’s Congress opened a thirty-day period of public consultation o

n the draft law that attracted more than 190.000 comments, more than any other draft law in recent history (Liang 2008).Two important aspects of the n China’s 2008 labor contract law implementation and implications for china’s workers

ew Law are regulations on the nature of contracts that employers were obligated to provide workers and increased severance payments to fired workers.

China’s 2008 labor contract law implementation and implications for china’s workers

Under the new Law. after a worker completes two fixed-term contracts, or ten years of employment, employment contracts must be made open-ended. Employ

Public Disclosure AuthorizedPublic Disclosure AuthorizedPolicy Research Working Paper6542China’s 2008 Labor Contract LawImplementation and Implication

China’s 2008 labor contract law implementation and implications for china’s workers e employment without cause, this restriction was significant. The probationary period for new contracts is limited to one to six months depending on t

he contract length. New regulations also were passed on the use of temporary work agencies, or labor service companies. Use of labor subcontracting ha China’s 2008 labor contract law implementation and implications for china’s workers

s expanded rapidly in China since the 1990s as employers have sought out new ways to increase employment flexibility and avoid some of the legal oblig

China’s 2008 labor contract law implementation and implications for china’s workers

ations due to regular employees. With respect to

Public Disclosure AuthorizedPublic Disclosure AuthorizedPolicy Research Working Paper6542China’s 2008 Labor Contract LawImplementation and Implication

Public Disclosure AuthorizedPublic Disclosure AuthorizedPolicy Research Working Paper6542China’s 2008 Labor Contract LawImplementation and Implication

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