Effects of the Changing Employment Situation on Urban Chinese Women

I. Introduction For the last decade. Chinese reformers have concentrated on increasing output through a more comprehensive use of markets. The initial focus was on rural areas. By the mid-1980s, however, over 95 percent of rural households were involved in the responsibility system, and the reformers turned their attention to the cities. They required firms to be cost conscious and allowed prices and wages to be influenced by supply and demand. The reforms have led to recognition of a large amount of hidden unemployment and a greater acceptance of open unemployment. Few steps have been taken to remove unnecessary workers at this point, but state firms are under pressure to become more competitive. Recently officials announced that they plan to reduce the work force by at least 2 percent (Beijing Review, Apt. 6-12, 1992, p. 12). Although the reforms have created new options for women -- evident in the large number of women selling goods and services in small stores and stalls that line the streets of large cities -- the need to make more efficient use of labor has also resulted in special problems for women. In the cities, women face discrimination in finding jobs (FBIS, Sept. 7, 1988, p. 31; July 1, 1991, p. 48; Mar. 19, 1991, p. 16). Despite some respite during the retrenchment following the Tiananmen Incident in 1989, many women with jobs in traditionally male fields, such as heavy industry, have been either transferred to what is considered appropriate female work or compelled to take leaves of absence with lower pay (FBIS, July 11, 1988, p. 59). In addition, a debate is occurring over whether so many women should be in the labor force (see Zhongguo Funu Bao, June 17, 1988, p. 3; June 22, 1988, p. 2; July 11, 1988, p. 3; Sept. 19, 1988; also FBIS, Sept. 29, 1988. pp. 51-53). This paper focuses on the impact of the economic reforms on urban women. Section II describes the situation facing urban women at the beginning of the post-Mao reform period. Sections III - V examine the post-Mao changes in three areas that influence the employment environment for women: 1) the beginnings of a labor market under conditions of surplus labor, 2) increased employment opportunities and limiting factors, and 3) threats to the employment capabilities of women. These changes also have an impact on the status of women within the household. Section VI analyzes the impact of these changes on the capabilities and bargaining power of urban women, drawing on Amartya Sen's method that includes such intrahousehold aspects. Available data on women are at times inconsistent and misleading; therefore, official sources are supplemented with reports from Zhongguo Funu Bao, FBIS, and Beijing Review as well as with interviews I conducted in China in 1991.(1) II. Women in the Urban Areas Although the leadership of the PRC has taken some steps to reduce discrimination against women, its efforts have vacillated over the years. During Mao's period, employment policy played the central role in the attempt to improve conditions for Chinese women. Accordingly, in the cities almost all women who were able to work were assigned jobs. Positions in state-run firms provided maternity leave, child care, and pensions; collective enterprises gave lower pay and fewer benefits. Table I illustrates that most urban women were employed in the state firms, but the concentration of women was larger in the collectives. Labor force participation rates for Chinese women (over 70 percent) are among the highest in the world (Taylor, 1985, pp. 13-14; FBIS, Aug. 22, 1988, pp. 34-35). Table 1 Staff and Workers by Ownership Unit (Millions) Urban Total State-Owned Other(*) Collective 1978 1990 1978 1990 1990 1978 1990 Total 94.99 140.59 74.51 103.46 1. …