IDEAS home Printed from https://ideas.repec.org/a/bla/jecsur/v32y2018i2p420-439.html
   My bibliography  Save this article

Economic Transition And Labour Market Dynamics In China: An Interpretative Survey Of The €˜Turning Point’ Debate

Author

Listed:
  • Prema†chandra Athukorala
  • Zheng Wei

Abstract

Has the Chinese economy approached the ‘Lewisian turning point’ that marks the ending of the initial phase of industrial transformation fuelled by surplus labour? In this paper we undertake an interpretative survey of the literature on this issue, in the context of China's labour market conditions prior to the reforms and structural change of the past three decades. The available evidence is mixed, and our assessment makes a strong case for probing institutional constraints to labour mobility from an economy†wide perspective, going beyond the confines of the rural economy.

Suggested Citation

  • Prema†chandra Athukorala & Zheng Wei, 2018. "Economic Transition And Labour Market Dynamics In China: An Interpretative Survey Of The €˜Turning Point’ Debate," Journal of Economic Surveys, Wiley Blackwell, vol. 32(2), pages 420-439, April.
    • Handle: RePEc:bla:jecsur:v:32:y:2018:i:2:p:420-439
    DOI: 10.1111/joes.12206
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/joes.12206
    Download Restriction: no
    File URL: https://libkey.io/10.1111/joes.12206?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. C. Fred Bergsten & Bates Gill & Nicholas R. Lardy, 2006. "China: The Balance Sheet What the World Needs to Know Now about the Emerging Superpower," Peterson Institute Press: All Books, Peterson Institute for International Economics, number pa04648, April.
    2. Loren Brandt & Debin Ma & Thomas G. Rawski, 2014. "From Divergence to Convergence: Reevaluating the History behind China's Economic Boom," Journal of Economic Literature, American Economic Association, vol. 52(1), pages 45-123, March.
    3. Zhao, Yaohui, 1999. "Labor Migration and Earnings Differences: The Case of Rural China," Economic Development and Cultural Change, University of Chicago Press, vol. 47(4), pages 767-782, July.
    4. Knight, John & Deng, Quheng & Li, Shi, 2011. "The puzzle of migrant labour shortage and rural labour surplus in China," China Economic Review, Elsevier, vol. 22(4), pages 585-600.
    5. Kam Wing Chan, 2010. "The Global Financial Crisis and Migrant Workers in China: ‘There is No Future as a Labourer; Returning to the Village has No Meaning’," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 34(3), pages 659-677, September.
    6. Xiaogang Wu & Donald Treiman, 2004. "The household registration system and social stratification in China: 1955–1996," Demography, Springer;Population Association of America (PAA), vol. 41(2), pages 363-384, May.
    7. Golley, Jane & Meng, Xin, 2011. "Has China run out of surplus labour?," China Economic Review, Elsevier, vol. 22(4), pages 555-572.
    8. World Bank, 2005. "China : Integration of National Product and Factor Markets, Economic Benefits and Policy Recommendations," World Bank Publications - Reports 8690, The World Bank Group.
    9. Xin Meng & Chris Manning & Li Shi & Tadjuddin Nur Effendi (ed.), 2010. "The Great Migration," Books, Edward Elgar Publishing, number 13619.
    10. Nicholas R. Lardy, 2014. "Markets over Mao: The Rise of Private Business in China," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 6932, April.
    11. Lewis, W Arthur, 1979. "The Dual Economy Revisited," The Manchester School of Economic & Social Studies, University of Manchester, vol. 47(3), pages 211-229, September.
    12. Gustav Ranis, 2004. "Arthur Lewis' Contribution to Development Thinking and Policy," Working Papers 891, Economic Growth Center, Yale University.
    13. Dennis Tao Yang & Vivian Weijia Chen & Ryan Monarch, 2010. "Rising Wages: Has China Lost Its Global Labor Advantage?," Pacific Economic Review, Wiley Blackwell, vol. 15(4), pages 482-504, October.
    14. Galina Hale & Cheryl Long, 2011. "Are There Productivity Spillovers From Foreign Direct Investment In China?," Pacific Economic Review, Wiley Blackwell, vol. 16(2), pages 135-153, May.
    15. Kung, James Kai-sing, 2000. "Common Property Rights and Land Reallocations in Rural China: Evidence from a Village Survey," World Development, Elsevier, vol. 28(4), pages 701-719, April.
    16. Barry Naughton, 2007. "The Chinese Economy: Transitions and Growth," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262640643, December.
    17. Qingjie Xia & Lina Song & Shi Li & Simon Appleton, 2014. "The effect of the state sector on wage inequality in urban China: 1988--2007," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 12(1), pages 29-45, February.
    18. Yao, Yang, 2014. "The Chinese Growth Miracle," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 7, pages 943-1031, Elsevier.
    19. Mullan, Katrina & Grosjean, Pauline & Kontoleon, Andreas, 2011. "Land Tenure Arrangements and Rural-Urban Migration in China," World Development, Elsevier, vol. 39(1), pages 123-133, January.
    20. Alwyn Young, 2003. "Gold into Base Metals: Productivity Growth in the People's Republic of China during the Reform Period," Journal of Political Economy, University of Chicago Press, vol. 111(6), pages 1220-1261, December.
    21. Barry Bosworth & Susan M. Collins, 2008. "Accounting for Growth: Comparing China and India," Journal of Economic Perspectives, American Economic Association, vol. 22(1), pages 45-66, Winter.
    22. CAI, Fang & DU, Yang, 2011. "Wage increases, wage convergence, and the Lewis turning point in China," China Economic Review, Elsevier, vol. 22(4), pages 601-610.
    23. Zhang, Xiaobo & Yang, Jin & Wang, Shenglin, 2011. "China has reached the Lewis turning point," China Economic Review, Elsevier, vol. 22(4), pages 542-554.
    24. Fung Kwan, 2009. "Agricultural labour and the incidence of surplus labour: experience from China during reform," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 7(3), pages 341-361.
    25. Meng,Xin, 2009. "Labour Market Reform in China," Cambridge Books, Cambridge University Press, number 9780521121118, January.
    26. Yang Yao & Ninghua Zhong, 2013. "Unions and Workers' Welfare in Chinese Firms," Journal of Labor Economics, University of Chicago Press, vol. 31(3), pages 633-667.
    27. Appleton, Simon & Song, Lina & Xia, Qingjie, 2005. "Has China crossed the river? The evolution of wage structure in urban China during reform and retrenchment," Journal of Comparative Economics, Elsevier, vol. 33(4), pages 644-663, December.
    28. Eli Friedman & Ching Kwan Lee, 2010. "Remaking the World of Chinese Labour: A 30‐Year Retrospective," British Journal of Industrial Relations, London School of Economics, vol. 48(3), pages 507-533, September.
    29. Putterman, Louis, 1992. "Dualism and Reform in China," Economic Development and Cultural Change, University of Chicago Press, vol. 40(3), pages 467-493, April.
    30. Meng, Xin & Zhang, Junsen, 2001. "The Two-Tier Labor Market in Urban China: Occupational Segregation and Wage Differentials between Urban Residents and Rural Migrants in Shanghai," Journal of Comparative Economics, Elsevier, vol. 29(3), pages 485-504, September.
    31. Rawski, Thomas G., 1979. "Economic growth and employment in China," World Development, Elsevier, vol. 7(8-9), pages 767-782.
    32. Fang Cai, 2012. "The Coming Demographic Impact on China's Growth: The Age Factor in the Middle-Income Trap," Asian Economic Papers, MIT Press, vol. 11(1), pages 95-111, Winter/Sp.
    33. Cai, Fang & Wang, Meiyan, 2010. "Growth and structural changes in employment in transition China," Journal of Comparative Economics, Elsevier, vol. 38(1), pages 71-81, March.
    34. Zai Liang & Zhen Li & Zhongdong Ma, 2014. "Changing Patterns of the Floating Population in China, 2000–2010," Population and Development Review, The Population Council, Inc., vol. 40(4), pages 695-716, December.
    35. Gustav Ranis, 2004. "ARTHUR LEWIS's CONTRIBUTION TO DEVELOPMENT THINKING AND POLICY," Manchester School, University of Manchester, vol. 72(6), pages 712-723, December.
    36. Ms. Mitali Das & Mr. Papa M N'Diaye, 2013. "Chronicle of a Decline Foretold: Has China Reached the Lewis Turning Point?," IMF Working Papers 2013/026, International Monetary Fund.
    37. Douglas Gollin, 2014. "The Lewis Model: A 60-Year Retrospective," Journal of Economic Perspectives, American Economic Association, vol. 28(3), pages 71-88, Summer.
    38. Ranis, Gustav, 2004. "Arthur Lewis' Contribution to Development Thinking and Policy," Center Discussion Papers 28410, Yale University, Economic Growth Center.
    39. Annie Wei & Fung Kwan, 2014. "Understanding China's Lewis Turning Point: The Role of Regional Heterogeneity," Crawford School Research Papers 1408, Crawford School of Public Policy, The Australian National University.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shengqin Wu & Degang Yang & Fuqiang Xia & Xinhuan Zhang & Jinwei Huo & Tianyi Cai & Jing Sun, 2022. "The Effect of Labor Reallocation and Economic Growth in China," Sustainability, MDPI, vol. 14(7), pages 1-22, April.
    2. Julian Donaubauer & Christian Dreger, 2018. "The End of Cheap Labor: Are Foreign Investors Leaving China?," Asian Economic Papers, MIT Press, vol. 17(2), pages 94-107, Summer.
    3. Prema-chandra Athukorala, 2017. "China's evolving role in global production networks: implications for Trump's trade war," Departmental Working Papers 2017-08, The Australian National University, Arndt-Corden Department of Economics.
    4. Wang, Chao & Zhang, Yue-Jun, 2022. "The effect of environmental regulation and skill premium on the inflow of FDI:Evidence from Chinese industrial sectors," International Review of Economics & Finance, Elsevier, vol. 81(C), pages 227-242.
    5. İşcan, Talan B. & Lim, Kyoung Mook, 2022. "Structural transformation and inequality: The case of South Korea," Economic Modelling, Elsevier, vol. 107(C).
    6. Yan Mei & Jingyi Miao & Yuhui Lu, 2022. "Digital Villages Construction Accelerates High-Quality Economic Development in Rural China through Promoting Digital Entrepreneurship," Sustainability, MDPI, vol. 14(21), pages 1-29, October.
    7. Hao, Yu & Zhang, Zong-Yong & Yang, Chuxiao & Wu, Haitao, 2021. "Does structural labor change affect CO2 emissions? Theoretical and empirical evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 171(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Prema-chandra Athukorala & Zheng Wei, 2015. "Economic Transition and Labour Market Dynamics in China: An Interpretative Survey of the ‘Turning Point’ Debate," Departmental Working Papers 2015-06, The Australian National University, Arndt-Corden Department of Economics.
    2. Scott Rozelle & Yiran Xia & Dimitris Friesen & Bronson Vanderjack & Nourya Cohen, 2020. "Moving Beyond Lewis: Employment and Wage Trends in China’s High- and Low-Skilled Industries and the Emergence of an Era of Polarization," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 62(4), pages 555-589, December.
    3. Zhou, Yixiao & Tyers, Rod, 2019. "Automation and inequality in China," China Economic Review, Elsevier, vol. 58(C).
    4. Ge, Suqin & Yang, Dennis Tao, 2011. "Labor market developments in China: A neoclassical view," China Economic Review, Elsevier, vol. 22(4), pages 611-625.
    5. Fields, Gary & Song, Yang, 2020. "Modeling migration barriers in a two-sector framework: A welfare analysis of the hukou reform in China," Economic Modelling, Elsevier, vol. 84(C), pages 293-301.
    6. Yinhua Mai & Xiujian Peng & Peter Dixon & Maureen Rimmer, 2014. "The economic effects of facilitating the flow of rural workers to urban employment in China," Papers in Regional Science, Wiley Blackwell, vol. 93(3), pages 619-642, August.
    7. Ye, Longfeng & Robertson, Peter E., 2019. "Hitting the Great Wall: Structural change and China's growth slowdown," China Economic Review, Elsevier, vol. 56(C), pages 1-1.
    8. Longfeng Ye & Peter E. Robertson, 2017. "Migration and Growth in China: A Sceptical Assessment of the Evidence," Economics Discussion / Working Papers 17-03, The University of Western Australia, Department of Economics.
    9. John Knight, 2021. "A Tale of Two Countries and Two Stages: South Africa, China and the Lewis Model," South African Journal of Economics, Economic Society of South Africa, vol. 89(2), pages 143-172, June.
    10. Lu, Jie, 2015. "Varieties of Governance in China: Migration and Institutional Change in Chinese Villages," OUP Catalogue, Oxford University Press, number 9780199378746.
    11. Nazrul Islam & Kazuhiko Yokota, 2008. "Lewis Growth Model and China's Industrialization," Asian Economic Journal, East Asian Economic Association, vol. 22(4), pages 359-396, December.
    12. Dreger, Christian & Zhang, Yanqun, 2017. "The Hukou Impact on the Chinese Wage Structure," IZA Discussion Papers 10720, Institute of Labor Economics (IZA).
    13. Kwan, Fung & Wu, Yanrui & Zhuo, Shuaihe, 2018. "Surplus agricultural labour and China's Lewis turning point," China Economic Review, Elsevier, vol. 48(C), pages 244-257.
    14. Qu, Zhaopeng & Zhao, Zhong, 2017. "Glass ceiling effect in urban China: Wage inequality of rural-urban migrants during 2002–2007," China Economic Review, Elsevier, vol. 42(C), pages 118-144.
    15. Yinyin Cai & Yew-Kwang Ng, 2014. "Part-Peasants: Incomplete Rural–Urban Labour Migration in China," Pacific Economic Review, Wiley Blackwell, vol. 19(4), pages 401-422, October.
    16. Golley, Jane & Meng, Xin, 2011. "Has China run out of surplus labour?," China Economic Review, Elsevier, vol. 22(4), pages 555-572.
    17. Du, Julan & Fang, Hongsheng & Jin, Xiangrong, 2014. "The “growth-first strategy” and the imbalance between consumption and investment in China," China Economic Review, Elsevier, vol. 31(C), pages 441-458.
    18. Xiaobing Wang & Nick Weaver, 2013. "Surplus labour and Lewis turning points in China," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 11(1), pages 1-12, February.
    19. Shang-Jin Wei & Zhuan Xie & Xiaobo Zhang, 2017. "From "Made in China" to "Innovated in China": Necessity, Prospect, and Challenges," Journal of Economic Perspectives, American Economic Association, vol. 31(1), pages 49-70, Winter.
    20. He, Ming & Chen, Yang & van Marrewijk, Charles, 2021. "The effects of urban transformation on productivity spillovers in China," Economic Modelling, Elsevier, vol. 95(C), pages 473-488.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jecsur:v:32:y:2018:i:2:p:420-439. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0950-0804 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.