The Emergence of a New 'Socialist' Market Labour Regime in China

GIGA Working Paper No. 39

46 Pages Posted: 6 Apr 2007 Last revised: 16 Aug 2012

See all articles by Günter Schucher

Günter Schucher

GIGA Institute of Asian Studies

Jutta Hebel

German Institute of Global and Area Studies (GIGA)

Date Written: December 1, 2006


China's transition to a market economy has been a process of basic institutional changes and institution building. The institutional change from a socialist labour regime (SLR) as one of the backbones upholding the traditional leninist system to a new "socialist" market labour regime (SMLR) became particularly important for the success of economic and political reforms. This analysis is based on the analytical framework of regimes and makes use of the idea of path dependence. An ensemble of institutions, mutually interconnected and influencing each other, forms the regime and shapes its trajectory. Six institutions are identified to constitute the employment regime: (1) the system of social control, (2) the production system, (3) the system of industrial relations, (4) the welfare system, (5) the family order, and (6) the educational system. The SMLR is still characterised by its socialist past and differs from other varieties of transformation labour regimes and bears little resemblance to labour regimes in Western market economies.

Keywords: China, institutional change, transition, labour market, employment regime, path dependence

JEL Classification: B52, J08, J40, P36

Suggested Citation

Schucher, Günter and Hebel, Jutta, The Emergence of a New 'Socialist' Market Labour Regime in China (December 1, 2006). GIGA Working Paper No. 39. Available at SSRN: or

Günter Schucher (Contact Author)

GIGA Institute of Asian Studies ( email )

Rothenbaumchaussee 32
Hamburg, Hamburg D-20148

Jutta Hebel

German Institute of Global and Area Studies (GIGA) ( email )

Neuer Jungfernstieg 21
Hamburg, DE D-20354

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