and social inequality in contemporary urban ChinaDanwei

Abstract

Prior research showed that danwei, the work unit, was very important in determining workers' social, economic, and political lives in pre-reform urban China. In this paper, we argue that danwei continues to be an agent of social stratification in contemporary urban China. Using data from a 1999 survey we conducted in three large Chinese cities, Wuhan, Shanghai, and Xi'an, we assess the extent to which workers' socioeconomic well-being depends on the financial conditions of their danwei. Results show that the financial situation of danwei remains one of the most important determinants of earnings and benefits. However, the explanatory power of danwei's financial situation is much greater for earnings than for benefits.

Understanding inequality in China

“…This stands in sharp contrast to ancient Greece, where citizens were equal and were able to participate in politics directly and independently, although not everyone was a citizen, and their society was small. Partly due to the vastness of China, the societal role of a Chinese citizen is often indirect, nested in and mediated by a relatively small locale or danwei , which, in turn is nested in a larger danwei or local government (Xie, Lai, and Wu, 2009). …”

Changes in the Determinants of Marriage Entry in Post-Reform Urban China

“…Further, consumption practices and housing situations have also changed greatly in urban China. As discussed in the past literature (Bian 2002;Wu 2002;Xie, Lai, and Wu 2009), the ownership of a work unit (danwei) was historically strongly associated with one's economic welfare, especially during the Mao era. Working in the state-owned sector was commonly labeled as having "iron rice bowels" (tie fanwan), symbolizing advantages in many aspects of life, such as housing.…”

Household Wealth in China

“…For quite a long period in China, wealth was a luxury that was available to only a select few. Before the economic reform that began in 1978, China had a planned economy in which productivity was low, private property of any substantial value was prohibited, and necessities such as housing and food were collectively produced and then administratively distributed on egalitarian terms (Xie, Lai, and Wu 2009). Therefore, wealth was seldom a topic of public discourse before sustained rapid economic development was launched by the economic reform in 1978 (Xie 2011).…”