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Multiple Labour Markets in the Industrial State Enterprise Sector

Employment in the Chinese industrial state enterprise sector is multifaceted. The bulk consists of regular state workers, entitled to an iron rice bowl and to higher earnings than other workers. Quite apart from the recent contract workers, however, such employment also consists of members of large and small collectives for which the state enterprise is the patron and over which it exercises control. Temporary state workers constitute a third auxiliary category that has long existed in this sector. The national government is the main body determining the number of people in the principal category of workers. However local authorities and the enterprise itself decide on the number in the auxiliary categories as well as choosing the individuals in all categories. (Throughout this article, “local” authorities are denned as including provincial, prefectural, municipal and county. This definition follows from what is appropriate to the hypotheses examined below.)