Gains from Contractualization: Evidence from Labor Regulations on Chinese Workers
In: China Law and Society ReviewSearch for other papers by Qin Gao in
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Search for other papers by Candice Yandam Riviere in
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Abstract
The 2008 Labor Contract Law of China stipulates that all employment relationships must be covered by a written labor contract. This regulation considerably strengthened employment protection for workers. Using a unique longitudinal dataset, the China Labor-force Dynamics Survey (2012, 2014, and 2016 waves), this article estimates the impact of the formal contractualization of labor relations on workers’ labor market outcomes, social insurance participation, and job satisfaction. We find that obtaining a labor contract was strongly associated with an increase in salary, a decrease in working overtime hours, and greater participation in unemployment and pension insurances. In terms of job satisfaction, workers who obtained a labor contract reported being less satisfied with their workplace environment and income than they had anticipated. This is not to suggest that workers are not benefiting from the law. Instead, it suggests that workers had higher expectations from benefits gained through contractualization than what they derived.
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| All Time | Past 365 days | Past 30 Days | |
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Gains from Contractualization: Evidence from Labor Regulations on Chinese Workers
In: China Law and Society ReviewSearch for other papers by Qin Gao in
Current site
Google Scholar
PubMed
Search for other papers by Candice Yandam Riviere in
Current site
Google Scholar
PubMed
Abstract
The 2008 Labor Contract Law of China stipulates that all employment relationships must be covered by a written labor contract. This regulation considerably strengthened employment protection for workers. Using a unique longitudinal dataset, the China Labor-force Dynamics Survey (2012, 2014, and 2016 waves), this article estimates the impact of the formal contractualization of labor relations on workers’ labor market outcomes, social insurance participation, and job satisfaction. We find that obtaining a labor contract was strongly associated with an increase in salary, a decrease in working overtime hours, and greater participation in unemployment and pension insurances. In terms of job satisfaction, workers who obtained a labor contract reported being less satisfied with their workplace environment and income than they had anticipated. This is not to suggest that workers are not benefiting from the law. Instead, it suggests that workers had higher expectations from benefits gained through contractualization than what they derived.
| All Time | Past 365 days | Past 30 Days | |
|---|---|---|---|
| Abstract Views | 500 | 500 | 112 |
| Full Text Views | 13 | 13 | 1 |
| PDF Views & Downloads | 20 | 20 | 1 |
