Chinese State Owned Enterprises

1396 WordsJan 25, 20186 Pages
Introduction Since the Chinese Economic reform in 1978, Chinese economy transferred from planned economy to market economy. Under the new circumstances of socialist market economy with Chinese characteristics, a large number of workers faced unemployment with the economic reforms. In the 1990s, the reforms of State-Owned-Enterprises (SOEs) enhanced the job losses and changes, causing a new noun ‘xiagang’, the laid-off workers unemployed with remained work relationships from SOEs. In comparison with the situations before 1980s, the workers’ benefits and social positions have dramatically changed. The workers no longer hold the so called ‘Iron Rice Bowl’ that guaranteed all the welfares and permanent employment. On ‘xiagang’ status, workers are helpless, depressed and confused about the future. ‘Laid-off workers in China’ has become an issue of great significance related to workforce allocation, people’s wellbeing and economic development. In this essay, we will discover the reasons for the appearance of laid-off workers in China from current literature via historical and economic aspects and also the influences of reforms of SOEs on the hardship of the laid-off workers. In addition, the re-employment policies will be covered. Appearance of laid-off workers A massive number of workers in Chinese SOEs and their families have faced negative shocks in employment, their relation with employers and the state since 1980s. Resulted problems on the low income and lack of
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