The Labor Contract Law, Macro Conditions, Self‐Selection, and Labor Market Outcomes for Migrants in China. (January 2017)

• Record Type: Journal Article
• Authors: Meng, Xin
• Is Part Of: Asian economic policy review. Volume 12:Number 1(2017:Jun.)
• Page Start: 45
• Page End: 65
• Publication Date: 2017-01
• Subjects: China -- Labor contract law -- migrant workers; J30 -- J41; Finance -- Asia -- Periodicals; Asia -- Economic conditions -- Periodicals; Asia -- Economic policy -- Periodicals; 330.95
• DOI: 10.1111/aepr.12157
• Languages: English
• ISSNs: 1832-8105

Abstract

Abstract : China introduced a new Labor Contract Law (LCL, 2008) to protect employees' working conditions and welfare. Early evaluations of labour market outcomes suggest positive effects for workers. In the same period, however, China faced labor market tightening, which facilitated the LCL's introduction and enforcement. Existing evaluations of the LCL treat the introduction of the LCL as being exogenous. We show that labor market tightening and individuals' self‐selection into jobs whichcomply with the Law have affected migrant labor market outcomes. Taking these factors separately into account suggests that, the LCL has had varying effects on labor market outcomes: a negative effect on wages and hours; an unclear effect on having a written contract, and a positive effect on social insurance participation. Data inadequacies prevent us from considering these factors simultaneously.