[lbo-talk] China

Marv Gandall marvgand at gmail.com
Mon Dec 27 12:46:52 PST 2010


On 2010-12-27, at 12:40 PM, Eric Beck wrote:


> ... a large portion of the wage
> gains in the last few years have come from a state-financed wage
> premium in the state sector, while wages in private manufacturing and
> basic services have grown much more slowly, if at all.

======================= My understanding is otherwise. Most of the wage gains have been in the manufacturing sector, notably that part of it which is foreign owned. The rapid economic development of the Chinese interior has reduced farm migration and resulted in labour shortages in the coastal export zones, and the Chinese leadership, concerned about rising social unrest and intending more consumption-led growth, has sought to boost mass purchasing power by both raising the minimum wage and sanctioning limited collective bargaining.

See, for example:

http://www.economist.com/node/16693397

http://www.ibtimes.com/articles/27971/20100610/labor-unrest-strikes-wage-concessions.htm

Let me know if the Economist article is subscriber-only and I'll make it available.



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