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Policy Issues of China's Urban Unemployment

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  • Shunfeng Song

Abstract

This article investigates causes and characteristics of urban layoff and unemployment. Chinese statistics show that the worsening urban unemployment problem is mainly caused by China's institutional changes, sectoral shifts, and cyclical fluctuations. Workers who are middle‐aged, less educated, and female have experienced a higher risk of being laid off and unemployed. This article also discusses policy issues of China's urban layoff and unemployment. Supply‐side policies include those that expand education, establish job‐training programs, limit massive rural–urban migration in the short run, and rationalize labor force participation rate. Demand‐side policies aim to create jobs, including policies such as promoting the service industry, attracting foreign investment, and developing the nonstate economy.

Suggested Citation

  • Shunfeng Song, 2003. "Policy Issues of China's Urban Unemployment," Contemporary Economic Policy, Western Economic Association International, vol. 21(2), pages 258-269, April.
    • Handle: RePEc:bla:coecpo:v:21:y:2003:i:2:p:258-269
    DOI: 10.1093/cep/byg009
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    References listed on IDEAS

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    1. Shunfeng Song & George S‐F Chu, 1997. "Social Security Reform In China: The Case Of Old‐Age Insurance," Contemporary Economic Policy, Western Economic Association International, vol. 15(2), pages 85-93, April.
    2. Wim Groot & Henriette Maassen Vann De Brink, 2000. "Education, training and employability," Applied Economics, Taylor & Francis Journals, vol. 32(5), pages 573-581.
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    Cited by:

    1. Liu, Qian, 2012. "Unemployment and labor force participation in urban China," China Economic Review, Elsevier, vol. 23(1), pages 18-33.
    2. Wenxi Yan & Eduardo Schiehll & Maureen I. Muller-Kahle, 2019. "Human and relational capital behind the structural power of CEOs in Chinese listed firms," Asia Pacific Journal of Management, Springer, vol. 36(3), pages 715-743, September.
    3. Xiaolin Xie & Yan Xia & Xiaofan Liu, 2007. "Family income and attitudes toward older people in China: comparison of two age cohorts," Journal of Family and Economic Issues, Springer, vol. 28(1), pages 171-182, March.
    4. Chi, Wei & Li, Bo, 2008. "Glass ceiling or sticky floor? Examining the gender earnings differential across the earnings distribution in urban China, 1987-2004," Journal of Comparative Economics, Elsevier, vol. 36(2), pages 243-263, June.

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