The Great Migration
Show Less

The Great Migration

Rural–Urban Migration in China and Indonesia

Edited by Xin Meng, Chris Manning, Li Shi and Tadjuddin Nur Effendi

This fascinating study compares and contrasts the immense internal migration movements in China and Indonesia. Over the next two decades, approximately two-thirds of the rural labour force is expected to migrate, transforming their respective societies from primarily rural to urban based.
Buy Book in Print
Show Summary Details

Chapter 4: Wage Structures and Inequality Among Local and Migrant Workers in Urban China

Deng Quheng and Li Shi

Extract

4 Wage Structures and Inequality among Local and Migrant Workers in Urban China Deng Quheng and Li Shi 1 INTRODUCTION China has been in transition from a planned to a market economy since the end of the 1970s when economic reform began. Although the labour market has been slower to change than other markets, such as commodity and capital markets, there can be no doubt that a labour market has gradually developed. Currently, the labour market plays an important role in labour allocation and wage determination. Governments, both central and local, are no longer responsible for assigning jobs to workers, and enterprises now possess complete autonomy over hiring, firing and wage determination. Governments may still have control over the quantity of labour hired by state-owned enterprises and the public sector, but not over who to hire and at what price. Nevertheless, China's labour market is still far from competitive, and institutional barriers, both formal and informal, continue to exist. One of those barriers is the restrictions on rural migrants in the urban labour market implemented through the household registration (hukou) system. Under this system, only individuals who hold an urban hukou are eligible to obtain certain types of jobs in urban areas. This has led to a concentration of urban hukou holders in the professional and managerial sections of the workforce. In 1995, for instance, Meng and Zhang (2001) found that 36.7 per cent of urban hukou holders in Shanghai held white-collar jobs, whereas the proportion for rural migrant workers...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.


Further information

or login to access all content.