中国廉价劳动力及其国内迁移【英文】

Why is there such a significant difference between the legal and actual labor standards in China?



Under the Post-Maoist economic reforms, initiated in 1978, the Chinese government instituted an internal passport system know as the Hukou system. Under the Hukou system, citizenship rights are tied place of residence and occupation. Thus, rural people in western China only have citizenship rights, such as state benefits and legal recourse, in their home villages.
The difference cheap wages make




In 1960 the Etch-A-Sketch was sold for around $8 In 2003 the cost of an Etch-ASketch in Wal-Mart was just over $9.50 Adjusted for inflation, the Etch-ASketch costs less today than in 1960. The decision to move Etch-ASketch manufacturing to China was driven by retailers’ (Walmart and Toys-R-US) demand for lower cost goods. Why are labor costs in China so cheap?
China’s labor standards

China has similar labor standards as the United States.



The legal minimum wage is $.33 The work week is 40 hours, with requirements that any work over 40 hours be compensated at a rate of 1.5 x the base salary. Non-salary benefits are required for all full- time employees.

Fear of being reported for illegal migration prevents laborers from taking legal action against companies that break China’s labor laws.
Rural poverty and displacement


Due to rising levels of rural poverty and significant amounts of displacement (like dam building) an estimated 114 million rural people have migrated to manufacturing centers (SEZ) on the coast. Because of the Hukou system, rural migrants have no legal standing in the urban manufacturing centers. They are essentially illegal immigrants.

Shenzhen is a Special Economic Zone, which forms part of a growth triangle that includes Hong Kong.
Labor differences


Prior to closing their plant in Ohio, the Ohio Art Company was paying its unionized employees $9 plus benefits and time and a half for overtime over 40 hours a week. In China, the Etch-A-Sketch is produced by employees earning around $.24 an hour, without benefits or significant overtime pay, though employees often work around 84 hours a week.
Undocumented Labor and Pimmigrants in the US, the power to deny laborers citizenship rights creates a pool of highly complacent labor.
Internal Migration and Cheap Labor in China
The Etch-A-Sketch


The Etch-A-Sketch toy was first designed and manufactured in 1960 in Bryan, Ohio by the Ohio Art Company. In 2000 the Ohio Art Company closed its toy manufacturing facilities in Ohio and began manufacturing the Etch-ASketch in Shenzhen, China.