StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Wage differences in Urban Informal Sector of China - Essay Example

Comments (0) Cite this document
Summary
To understand the wage differences in informal sector of China, the rural urban migration issues need to be examined. This needs the analysis of household registration system in China, the profile of migrants, explanations for rural to urban migration, and the interaction between migration and labour market evolution…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.2% of users find it useful
Wage differences in Urban Informal Sector of China
Read TextPreview

Extract of sample "Wage differences in Urban Informal Sector of China"

Download file to see previous pages Though the study of migration is not new in economics, the study considered in this context is important due to the wage differences between urban and rural areas and the informal sector of the urban areas. In this study of migration of China, the household was recognised regarding migration. Instead of number of people migrated to urban areas, the households migrated are been registered in China. Out of urban-urban, rural -rural migrations, the rural -urban migration exposed the wage differences issue. 1
The migration from rural to urban is so much important as it was assumed that the hukou system of 1950s was proposed to tie the farmers to the land. This is for supplying low cost agricultural products to the industrial sector. This restricted the mobility of the people during the great famine during s1960s. The farmers depended on collective farming and the opportunity cost for migration was very high. The migration was made easy and speeded up when china started economic reforms in 1978. 2
The urban informal sector of developing countries like China absorbs who cannot find productive employment. If this point is ignored, it can be stated that it will contribute to employment and income generation. The legal status of the activities of the companies in the informal sector will fall outside the reach of the government regulations. This is due to the size of the companies having less than 10 employees and usage of simple and traditional technology. In China the government is limited to administrative resources tend to focus on large scale operations. The minimum wage legislation is enforced only in large scale establishments and informal sector was out of the reach of that legislation. One more reason for non implementation is that the companies seize to exist when the legislation is implemented. This needs the study of the determinants of employment in the urban informal sector in China. The size of the labour force of urban informal sector is due to the interactions within the economy as a whole. The absorption capacity rural areas regarding labour decides the migration and wage differences in the system. Though the urban informal sector is less in wages than the formal sector, the migration continues due to the still lesser wages in the rural areas. The urban informal sector absorbs very poor people as labour. As the sector provides income continuously without security, the poor and semi qualified people are absorbed by this sector. Particularly unskilled labour are employed and their lack of skills result in lower wages.
4. Effects of Informal Sector
In the globalisation and economic reforms period the countries like china are catching up the opportunities of trade and development. International specialisation has become more effective during the period of specialisation and the liberalisation resulted in lowering the transport costs. The informal sectors discussed the macroeconomic role of labour reallocation. This analysed the effects of economic growth, production and trade patterns. This included the analysis of wages and there existed a substantial difference between the wages of formal and informal sectors. This resulted in the differences in the effects of formal and informal sectors on macro economic effects. The simulation regarding the allocation of workers, has put them across low and ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Wage differences in Urban Informal Sector of China Essay”, n.d.)
Retrieved de https://studentshare.org/miscellaneous/1503215-wage-differences-in-urban-informal-sector-of-china
(Wage Differences in Urban Informal Sector of China Essay)
https://studentshare.org/miscellaneous/1503215-wage-differences-in-urban-informal-sector-of-china.
“Wage Differences in Urban Informal Sector of China Essay”, n.d. https://studentshare.org/miscellaneous/1503215-wage-differences-in-urban-informal-sector-of-china.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Wage differences in Urban Informal Sector of China

Informal Finance in China

...?Business Literature Review Table of Contents Business Literature Review Table of Contents 2 Literature Review I – Informal Finance in China 3 Introduction 4 Research and Analysis 4 Conclusion 7 Literature Review II –B2B relationships in China 8 Introduction 9 Research and Analysis 9 Conclusion 12 Reference List 13 Literature Review I – Informal Finance in China Introduction Informal financing refers to financial sources that do not belong to the organised banking and financial sector of the economy. In China, there are many types of informal financers such as, Rotating Savings and Credit Associations (lending cooperatives formed by members of the society) like, bahui, hehui and yaohui, private lending individuals, lending enterprises...
8 Pages(2000 words)Literature review

Informal v. Formal Remittances

In this case, the transfer of money across the borders becomes an issue of primary importance for many families internationally (especially when these families are located in developing countries). In practice, it has been found that the transfer of money internationally can present significant failures especially when the firms involved do not take the appropriate measures for the protection of the consumer. However, in the case of workers, such an outcome can lead to severe consequences (the financial support of the family faces a delay within unknown outcomes). In the literature, the transfer of money across the world has been an issue extensively analyzed. Most of the relevant studies prove that the lack of appropriate technol...
37 Pages(9250 words)Assignment

An Analysis of the Differences in Brain Processes of Males and Females during Language Tasks

Such is the case with the development of cognitive functions and language skills. While the brain may have complexities that we simply haven’t even yet scratched the surface of, seemingly every day there are advancements in our knowledge of brain functions.

MRI’s and various cognitive function tests have shown that males and females use different parts of their brains while performing the exact same language tasks; the biological basis for this is due to the organizing effects of testosterone and estrogen. Females have long been known to be slightly ahead of males as far as language skills at younger ages, but this could also be attributed to the fact that overall females develop earlier than males and reach...
7 Pages(1750 words)Case Study

Country Analysis Framework: China

Its impressive economic performance accompanied by a huge current account surplus of $304 billion in 2007, serves as a beacon to the audacious foreign investor. A multitude of factors has contributed to this phenomenal success of a country with more than one sixth of the world’s population. In brief it is a burgeoning market for luxuries and semi-luxuries.
I seek to focus the attention of the company management on the three fundamental but interrelated factors – strategy, context and performance. Strategic initiatives of a nation are basically determined by a set of broader predefined policy objectives that outweigh otherwise unimportant presumptuous goals. Context acquires both a national and an international sig...
9 Pages(2250 words)Case Study

The Economic Impact of the Emergence of China and India

... demand in the market of automobiles is an opportunity Toyota can leverage. This addition in customers can be acquired and added in its customer base in order to increase market share, and in turn revenues. Toyota can concentrate its penetration efforts in theses emerging super powers—China and India—in order to boost revenues. Information can also be utilized more in Toyota’s marketing function, which will serve as both acquisition and retention tool for its consumers. By giving consumers a different experience in their way to purchasing a Toyota unit, this will give the brand an advantage too which can be utilized. Because of information technology, retention and acquisition now of customers, through maintaining constant dialog with them...
10 Pages(2500 words)Assignment

Business Operations of Starbucks in China

“Starbucks opened its first store in Hong Kong in May 2000 and currently has 51 stores. Guangzhou opened in August 2003 and has 12 stores in Southern China, including six stores in Guangzhou and six stores in Shenzhen (BNET).” Starbucks has entered the Chinese market through joint ventures with companies like Mei-Xin and Macau. The company in order to strengthen its operations and brand image in the country has recently decided to extend the term of the joint venture agreement made with the above-mentioned companies. “As part of the transaction, Mei-Xin (International) Ltd., will also acquire a 30 percent interest in a joint venture to operate Starbucks stores in Chengdu (BNET).”

Apart from the a...
6 Pages(1500 words)Case Study

Civil Engineering Job Sector

The main aim of civil engineering is to make the life of man easy by constructing things like roads that will aid in the transportation of goods and services (Blair, 2007).
Civil engineering started to gain recognition in the United Kingdom in the late 18th and early 19th centuries. There was a foundation of very many professional bodies and societies, for example, the Law and Royal Society. Form the late 18th century a group of people, civil engineers, met regularly thus led to the formation of a society of Civil Engineers in the year 1771. The person behind all the success was John Smeaton. It is known as the Smeatonian Society. This further led to a formation of the institution of Civil Engineers (ICE) whose first presiden...
13 Pages(3250 words)Assignment

Company Strategy to the Public Sector

The definition of corporate strategies emphasizes the need for the organization to satisfy the needs of all the stakeholders if the organization is to achieve its overall objective of maximizing shareholder value. Stakeholders include employees, customers and the communities in which the organization operates. Employees, customers, and communities, therefore, have a significant impact on the success of the organization and thus on the corporate strategy of the organization. In formulating corporate strategy, organizations need to identify and priorities strategic issues, which involve scanning, selecting, interpreting and validating information. (Schneider, 1989).
The aim of this paper is to explain the strategy of an organiz...
7 Pages(1750 words)Assignment

International Communications: Democracy in China

The Party’s domination over the media has meant that the news media is required to accept Party ideology as its own, propagate Party programs and policies and accept the Party’s leadership. (Zhao, 1998:19). The Party closely surveys media content and media mentoring is performed by special teams of veteran Party workers (Zhao, 1998: 21). The Chinese Community Party views the role of the media in the political process as being based on its theory of political communication which in turn is derived from its basic philosophy of the mass line spelling out three distinct power levels, the Party Cadres, ordinary Party workers and the masses. While the people are the basis for policymaking, they do not participate in decision...
6 Pages(1500 words)Article

China Faces Pressure over Currency

Making its products cheaper in the US and thus encouraging imbalanced trade. It has been universally agreed that the free-floating Yuan would be significantly worth 15 cents.
Chinese economists feel that the impact has been over-exaggerated and particularly to America from Yuan revaluation. In particular, a stronger Yuan will not reduce the US’s trade deficit as there is a very smart segment of overlap between China and America Production and hence the US will not be able to replace Chinese imports. The consumer will end up paying more for imports from china or Vietnam and this would be like imposing a tax on US consumers.
The World Bank chief also disagrees with the US’s suggestion on China's currency rise a...
9 Pages(2250 words)Assignment

Increasing Public-sector Effectiveness by Changing Organisational Culture

Organizations have structures. Structures include degree or type such as horizontal differentiation, vertical differentiation, mechanism of coordination and control, formalization, and centralization of power. Classical theorists such as Taylor, Fayor, and Weber are of the belief that there is a single best way for organizations to be structured. However, organizations vary considerably on structural attributes. Modern theorists are of the belief that there is not one single best way to organize. An important aspect is a fit between the organization’s structure, size, technology and requirements of the environment. This is also known as the “contingency theory.” Size refers to the capacity, number of employees, o...
10 Pages(2500 words)Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Wage differences in Urban Informal Sector of China for FREE!

Contact Us