The Study for Reform of State-owned Enterprise and Unemployment Problem in China

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The study analyzed survey results of so-called xiagang workers in four cities of Beijing, Shanghai, Shenyang and Lanzhou in China. In the survey, 33 questions were asked to about 1,200 to 1,500 xiagang workers in each city. Xiagang workers, although very similar to unemployed workers, refer to those workers who were laid off and yet retain contract status with the enterprises. The study attempted to find any differences between relatively prosperous cities like Beijing and Shanghai and economically disadvantaged cities like Shenyang and Lanzhou where state enterprises still occupy the predominant position in the economy. The study made clear as to what kind of differences exist depending upon the difference in living expenses and in prospect for reemployment at the time of their layoff and the difference in four cities and in individual characteristics.Analysis was made to learn what kinds of workers were laid off, for example, management status of former employer enterprises, individual's job position and educational background. Attempts are also made to analyze the kinds of people who are reemployed by examining their sex, age, education level and their former job position.Study was made to learn the government policy aspects as to how the policy makers think about the problems of xiagang, about the policy to encourage their reemployment and about how they try to prevent dissatisfaction of xiagang workers. As a large scale appearance of xiagang workers took place since 1998 when reforms in state enterprises were implemented in earnest, the study also considered curre status of state enterprises reform and social welfare problems of unemployed workers.