Labour Market Flexibility and Social Security in the People's Republic of China

Abstract

From the very beginning, Chinese labour reforms have aimed at eliminating everything that chains the development of the productive forces1 - quite an ambitious goal given that China previously had the most rigid labour system in the socialist world. Subsequently, China has succeeded in the liberalization of its labour system but has so far fallen short in the protection of its labour force. Flexibility of the labour market conflicts with social security. The emerging labour market regime calls for a new institutional arrangement of social security in order to maintain coherence and stability in the society.