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2. Whyte, Martin K. and Parish, William, Urban Life in Contemporary China (Chicago: University of Chicago Press, 1984), pp. 9–107.Google Scholar

3. In 1978, on the eve of the post-Mao reforms, the average cash salary for 74·5 million state employees was 644 yuan, for the 20 million in collective jobs it was 505 yuan. Zhongguo shehui tongji ziliao (Chinese Social Statistics) (Beijing: Zhongguo tongji chubanshe, 1984), pp. 39 and 67.Google Scholar

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6. One solution to unemployment among city youth in the late 1970s was for enterprises to start small workshops and subsidiaries to supply goods and services for enterprise employees. For example, at Wuhan University a new landscaping team was established, at Textile Factory No. 6 in Shanghai noodle shops for night shift workers were set up, as was a fish pond team in a suburban county to provide low cost fish for the factory, and at Shanghai Cable Company a roadside canteen was established, which, it was hoped, would be expanded to include a hostel. Employees in these urban “sidelines” were paid through the profits and welfare funds of the state enterprise, but the workers were technically “outside the plan,” since they had not been allocated to the unit through the municipal labour or personnel bureaus. Virtually all of these workers were children of current or former employees between the ages of 17 and 25.

7. Hoffman, Charles “Urban unemployment in China,” Chinese Thought and Society, Vol. IX, No. 25 (03 1984), pp. 30–49.Google Scholar

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9. In the 1950s China averaged 40 births per 1,000, and urban rates were 90% of average rates. Bannister, Judith, “Population policy and trends in China, 1978–83,” CQ, No. 100 (12 1984), pp. 740–41Google Scholar; Caldwell, John C. and Srinivasan, K., “New data on nuptiality and fertility in China,” Population and Development Review, Vol. 10, No. 1 (03 1984), pp. 71–79.CrossRefGoogle Scholar

10. Zhongguo tongji nianjian, 1985 (Chinese Statistical Yearbook, 1985) (Beijing: Zhongguo tongji chubanshe, 1986), p. 216.Google Scholar

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12. Kirby, , loc cit., p. 117.Google Scholar

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14. Chinese Statistical Yearbook 1985, p. 215.Google Scholar

15. Between 1979 and 1983, official estimates of urban unemployment fell from 5·3 million to 2·7 million, Zhongguo shehui tongji ziliao (Chinese Social Statistics) (Beijing: Zhongguo tongji chubanshe, 1984), p. 39.Google Scholar

16. Although his focus is not on inter-generational inequality, Walder, , in “Wage reform,” pp. 23–24Google Scholar, documents precisely this phenomenon with the wage cuts in 1963 and 1966.

17. For fuller discussion of legislative history, and of the actual implementation between 1952 and 1980, see, Davis-Friedmann, D., Long Lives (Cambridge: Harvard University Press, 1983)Google Scholar, and “Chinese retirement: policy and practice,” in Current Perspectives on Aging and the Life Cycle, Vol. 1 (1985), pp. 295–313.Google Scholar

18. Chinese National Committee on Aging, Yanjiu ziliao (Research Materials), 28 05 1984.Google Scholar

19. By 1966, there were only 150,000 pensioners. Ibid.

20. Using the total labour force for 1965, given in The Chinese Statistical Yearbook, 1985, p. 213Google Scholar, and dividing it by the 150,000 figure for 1966, I estimate that approximately 0·05% of the entire work force, and 0·3% of the total urban and state labour force were pensioners.

21. After 1964 urban co-operatives and street-level collectives offered severance pensions whereby the retiring worker received one month's pay for each year worked. It differed from the pension system in that it was a lump sum payment and that it was taken/offered only when the worker was completely redundant.

22. Davis-Friedmann, , Long Lives, Ch. 4.Google Scholar

23. State Council directive No. 104, adopted 2 June 1978, “Temporary measures on old, weak, disabled cadres, and temporary measures for retirement of workers and staff,” reprinted in Ministry of Finance, Finance Regulations for Those Working in State and Central Units (Beijing: Caizheng bu, 1979) pp. 436–86.Google Scholar

24. Chinese Social Statistics, p. 13Google Scholar reports 3·14 million retired and resigned zhi yuan for 1978, and 5·96 million for 1979. However, in a book for internal circulation which identifies retirees as opposed to those who resigned, the total for 1978 was 2·92 million. See, Ministry of Labour and Personnel, Cadre Education Bureau, Laodong gongzi renshi zhidu gaige de yanjiu yu tandao (Research and Inquiry into the Reform of the Wage and Personnel System) (Beijing: Laodong renshi chubanshe, 1985), pp. 453–80.Google Scholar

25. E.g., at the end of 1978, 15% of all pensioners in China lived in Shanghai, by the end of 1985, the percentage had dropped to 8%. For 1978 see Laonian wenti (Problems in Regard to the Elderly) (Shanghai: Fudan daxue chubanshe, 1985), p. 123Google Scholar; for 1985, see Lao dong bao (Labour Weekly) (Shanghai), 28 01 1986, p. 1.Google Scholar For example in Guangdong, pensioners are equal to 20% of the number of workers in Zhongshan city, 25% in Shunde, 22% in Foshan. See Guangdong sheng tongji nianjian, 1985 (Guangdong Provincial Statistical Yearbook, 1985) (Hong Kong: Jingji daobao chubanshe, 1985), p. 91.Google Scholar

26. In 1978, 17% of pensioners had worked in collective enterprises, by 1980 the number had increased to 22%, and by December 1985 when only 25% of the total labour force was in the collective sector 28% of pensioners were from urban collectives. for 1978 figures, see Ministry of Labour and Personnel, Cadre Education Bureau, Research and Inquiry, pp. 453Google Scholar; for 1980, see Chinese National Committee on Aging, Yanjiu ziliao, 28 05 1984Google Scholar; for 1985 see Beijing Review, 19 01 1987, p. 21Google Scholar and talk by Yue Guangzhao, “Social insurance in China” Brandeis University, Waltham, Mass. January 1987. The growth is also documented by the vast sums spent by collectives in Shanghai, Shanghai tongji nianjian, 1983 (Shanghai Statistical Yearbook, 1983) (Shanghai: Renmin chubanshe. 1984), p. 335.Google Scholar

27. E.g., in Shanghai at the end of 1984, 7·8% of all retirees were under age 50, 73% were under age 65, and 60% has taken early retirement. Zhongguo laonian (Chinese Elderly), No. 1 (1986), p. 27Google Scholar; Laonianxue wenti (Essays in Gerontology) (Shanghai: Secretarial Group of Shanghai Gerontological Society, 1986), p. 112.Google Scholar See Guowuyuan gongbao (Bulletin of the State Council) (1981), pp. 771–73Google Scholar, for 7 November 1981 State Council regulation criticizing the problem of widespread early retirements. Also, Renmin ribao (People's Daily), 9 09 1983, p. 3Google Scholar, for announcements of corrective measures.

28. In 1978 there were 3 million retirees and 95 million zhi yuan, in 1985, 16·3 million retirees and 127·5 million zhi yuan. Beijing Review, 19 01 1987, p. 21.Google Scholar For Shanghai, pensioners represented 27% of zhi yuan in productive enterprises (qi ye) (Renmin ribao, 29 11 1986Google Scholar), for Zhengzhou 20% (Renmin ribao, 5 05 1986, p. 2Google Scholar), and for Beijing 18·3% (Renmin ribao, 4 11 1986).Google Scholar

29. Chinese Statistical Yearbook, 1985, p. 560Google Scholar; Beijing shi tongji nianjian 1984 (Beijing City Statistical Yearbook, 1985) (Beijing: Zhongguo tongji chubanshe, 1985), p. 386Google Scholar; Shanghai tongji nianjian, 1983 (Shanghai Statistical Yearbook, 1983) (Shanghai: Renmin chubanshe, 1984), p. 335Google Scholar; Tianjin jingji kaiguang (The Expansion of the Tianjin Economy) (Tianjin: Renmin chubanshe, 1984), p. 494Google Scholar; Hubei tongji nianjian, 1985 (Hubei Province Statistical Yearbook, 1985) (Hubei: Zhongguo tongji chubanshe, 1985), pp. 352–53Google Scholar; Shanxi tongji nianjian, 1983 (Shanxi Province Statistical Yearbook, 1983) (Shanxi: Shanxi renmin chubanshe, 1983), p. 9.Google Scholar

30. Plans to expand retirement benefits in rural areas have also stalled, and even in rich suburban areas there is resistance to new efforts. Hebei Province reports that excluding suburban Beijing, only 1% of peasants qualify for pensions. As in most existing rural retirement programmes, such pensions usually give no more than 150 renminbi per year. Zhongguo laonian, No. 4 (1986), pp. 35–36.Google Scholar

31. Zhongguo laonian, No. 4 (1987), p. 42.Google Scholar

32. Lee, Hong Yong, The Socialist State, Political Elites, and Reforms in China (book ms), Ch. 12.Google Scholar

33. The first, and most complete discussion of li xiu is by Melanie Manion in her translations and commentary of “Questions and answers on Party organizational work,” in Chinese Law and Government, Vol. 17, No. 3 (1984).Google Scholar

34. By 1982 there were 7,260 li xiu cadres, by September 1983, 470,000, April 1984, 830,000, and one million by July 1985, see Xinhua News, 6 February 1983, transl, in British Broadcasting Corporation, Summary of World Broadcasts, Part 3: The Far East, BII/14, 12 02 1983Google Scholar, Beijing Review, 12 09 1983, p. 6Google Scholar, Renmin ribao, 9 11 1984, p. 4Google Scholar, Renmin ribao (overseas edit.), 21 07 1985, p. 1.Google Scholar

35. Interview with cadres from Hebei Province Ministry of Civil Affairs, Shijiazhuang, China, May 1979. These criteria are also outlined in Ministry of Labour and Personnel, Cadre Education Bureau, Inquiry and Research, pp. 505–525.Google Scholar

36. Ibid.

37. Ibid. and Renmin ribao, 10 03 1985, p. 4.Google Scholar

38. This was the key date for deciding who received the most generous benefits in the 1978 legislation, and it continues to be used for setting priorities in allocating housing and cars.

39. Renmin ribao, 15 10 1984, p. 1Google Scholar, transl, in Foreign Broadcast Information Service (FBIS), 19 10 1984, p. K6–7Google Scholar; Renmin ribao, 5 11 1984, p. 1Google Scholar, transl, in FBIS, 9 11 1984, pp. Q1–2.Google Scholar

40. “Events and trends,” Beijing Review (17 07 1985), p. 6.Google Scholar

41. This principle was clearly articulated as early as 1980, when Deng and his colleagues were first dealing with the problem of military transfers. “State Council approves Department of Civil Affairs report on finding work for demobilized servicemen,” in Guowuyuan gongbao (Bulletin of the State Council) (1981), pp. 11–14.Google Scholar

42. Xinhua (20 October 1985) transl, in FBIS, 22 10 1985, pp. K14–15.Google Scholar

43. All information on ding ti legislation prior to 1978, comes from a chapter entitled, “Guanyu zhaushou tuixiu, tuizhi, sewang zhigong dezenu de guiding (“Regulations in regard to the hiring of children of staff who retire, resign or die”), in Zhongguo laodong lifa (Chinese Labour Law) (Beijing: Gongren chubanshe, 1980), pp. 32–35.Google Scholar

44. According to one book circulated internally, the 1974 regulation led to such an enormous flood of young people from the countryside, that in July 1979 the regulation had to be revised to permit only one child of each worker to return, and then only after first getting approval of the local labour bureau for a hu kou change, and second passing the physical and culture examinations. Qidong, Zhuang, Laodong gongce shouce (Handbook of Labour Salaries) (Tianjin: Renmin chubanshe, 1984), answer to question 12.Google Scholar

45. Ministry of Finance “Finance regulations for those working in state and central units,” pp. 436–86.Google Scholar

46. See Guowuyuan gongbao (1981), pp. 771–73.Google Scholar

47. Typical of many discussions I had with Chinese colleagues during these years, are the views of Kiu Jiaonong and Fei Huiyu, “Strive to turn those who passively wait for jobs into active participants in job training programmes,” in Liao wang (Beijing), No. 3 (20 03 1982), pp. 18–19Google Scholar, transl, in China Report: Political, Sociological, and Military Affairs, No. 316 (12 07 1982), pp. 30–33.Google Scholar

48. Guowuyuan gongbao (1983), pp. 931–33.Google Scholar

49. Guowuyuan gongbao (1986), pp. 739–50.Google Scholar

50. Shuxing, Li, “Laodong zhiyeh” (“Labour and employment”), in Xuexi yu shijian (Study and Practice), 2 02 1985, pp. 24–27.Google Scholar

51. On Guizhou, see South China Morning Post (Hong Kong), 27 02 1984Google Scholar; on Annui, Zhongguo jiaoyubao (Chinese Education News), 5 02 1985, p. 1Google Scholar; on Loyang, Renmin ribao, 9 11 1986, p. 2.Google Scholar

52. During a June 1987 visit to Shanghai, I discovered that many units had developed means to get around the requirement that new workers be contract workers. First, any one who was a graduate of a post-secondary school or secondary technical school was guaranteed a job through school fen pei, and units who received these graduates treated them as permanent staff not contract workers. Moreover, there were two categories of contract workers, those whom the unit directly hired, usually on long-term contracts, and those who came on one to three year contracts between the unit and the labour office of the Street Committee. As of June 1987 in Shanghai only a minority of new job entrants fell into this last category which most closely resembled the conditions outlined in the September 1986 legislation.

53. Renmin ribao, 9 11 1986, p. 2.Google Scholar

54. For full text of legislation see, “Guoying qiye shixing laodong hetongzhi zhanxing guiding” (“Temporary regulations on the labour contract system in state units of production”), Guowuyuan gongbao (1986), pp. 739–45.Google Scholar

55. Guansheng, Li, “We must reform our nation's current labour system,” in Ministry of Labour and Personnel, Cadre Education Bureau, Research and Inquiry, pp. 537–49Google Scholar; Fang, He, “The situation in regard to the reform of our management of labour wage plan and the management of enterprise labour,” in Ministry of Labour and Personnel, Cadre Education Department, Inquiry and Research, pp. 436–52.Google Scholar

56. Guangsheng, Li, loc. cit; Zhongguo laodong No. 9 (1985), p. 9.Google Scholar

57. Xin Bao (Hong Kong), 13 03 1987.Google Scholar

58. Renmin ribao, 20 02 1987, p. 2Google Scholar; Renmin ribao, 5 08 1987, p. 1.Google Scholar

59. Many articles comment generally on the savings for enterprises that employ contract workers, but in one report on a Shandong construction company which began using contract workers in 1982, the difference between contract and permanent workers doing the same work was actually itemized as 450 yuan per year, Jingjixue zhoubao (Economics Weekly), 21 01 1985, p. 3Google Scholar. For general discussion of the different costs of permanent and contract workers see, Zhimin, Chen, “Reform of local mines,” Jingji guanti (Economic Management) (1984), No. 7, pp. 25–27, 33Google Scholar; Zhongguo jiancai (Chinese Construction and Finance) (1985), No. 1, p. 8Google Scholar; Zhongguo laodong (1985), No. 2, pp. 13–15Google Scholar; Gongren ribao (Worker's Daily), 18 02 1985, p. 4Google Scholar; Yangcheng wanbao (Canton Evening News), 29 03 1985, p. 1Google Scholar; Dazhong ribao (Masses Daily) (Qingdao), 26 03 1985, p. 1Google Scholar; Yunnan ribao (Yunnan Daily) 2 08 1985, p. 2Google Scholar; Yunnan ribao, 5 09 1985, p. 2Google Scholar; Xinhua, , 26 09 1985Google Scholar transl, in FBIS, 27 09 1985, p. k1Google Scholar; Shichuan ribao (Sichuan Daily), 23 10 1985, p. 1Google Scholar; Laodong bao, 14 06 1986, p. 1Google Scholar; Renmin ribao, 5 10 1986, p. 2.Google Scholar

60. “From the Chinese press,” Beijing Review, 24 06 1985, p. 27Google Scholar; Henan Provincial Radio, 25 11 1985Google Scholar, transl, in FBIS, 6 12 1985, p. P3Google Scholar; Qiong, Luo, “Funu yu gaige,” (“Women and reform”), Hongqi (Red Flag) No. 5 (1985), pp. 16–19Google Scholar; Laodongbao, 20 06 1985, p. 1.Google Scholar

61. “Opinion Page,” Zhonggu funu (Chinese Women) (1986), No. 11, p. 10Google Scholar; Rofel, Lisa, “Women factory workers under the Post-mao reform,” paper at the 39th annual meetings of the Association for Asian Studies, Boston, Mass. 11 04 1987.Google Scholar

62. In 1978 pensions cost 1.6 billion yuan, and the entire wage bill was 56.8 billion; in 1985 pensions cost 14.5 billion, and wages were 137 billion. Sources, for 1978 pensions, Renmin ribao, 20 03 1987, p. 1Google Scholar; for wages, Chinese Statistical Yearbook, 1985, p. 554Google Scholar; for 1985 pensions, 11 May 1986, p. 1; for wage bill, 1985 State Statistical report, reprinted in Guowuyuan gongbao (1986), p. 140.Google Scholar

63. All material on financing mechanisms prior to 1969, comes from Zhongguo laodong lifa (Chinese Labour Laws), pp. 293–99.Google Scholar

64. The contribution for health at that time was set at 5% for light industry, and 7% for heavy industry, with a total contribution for all forms of welfare not to exceed 15·7% for light industry and 17·7% for heavy.

65. Renmin ribao, 6 09 1985, p. 5Google Scholar; Ministry of Labour and Personnel, Cadre Education Bureau, Research and Inquiry, pp. 1–7.Google Scholar

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68. For the best overall discussion of history and implementation, as well as examples of local regulation, see Ministry of Labour and Personnel, Welfare Insurance Bureau. Tuixiu jiqin tongchou yu tuixiu zhigong guanli wenti (Questions about the Unified Pension Fund and Management of Retired Workers and Staff) (Beijing: Laodong renshi chubanshe, 1985).Google Scholar

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70. Beijing Review, 20 04 1987, p. XII.Google Scholar

71. Renmin ribao, 5 05 1987, p. 1.Google Scholar

72. Renmin ribao, 4 11 1986, p. 3.Google Scholar

73. In Qingdao which is held up as a national model in this area, the unit contributes 20%, the individual 2%. Zhongguo laodong, No. 6 (1985), pp. 13–15Google Scholar; in Anyang city, the unit contributes 10%, the individual 2%; in Shandong province the unit 20%, the individual 2% Zhongguo laodong renshi bao (Chinese Labour and Personnel News), 19 03 1986, p. 2Google Scholar. For peasant workers in Nanjing state construction firms, there is a set fee for various grades of workers, and this fee is divided between a 20% payment by the worker and 80% payment by the unit. Zhongguo laodong renshi bao, 5 02 1986, p. 2.Google Scholar

74. Zhongguo laodong renshi bao, 29 01 1986, p. 1Google Scholar; Shantou ribao (Swatow Daily), 4 08 1985, p. 2.Google Scholar

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76. Beijing Review, 24 06 1985, p. 8Google Scholar; Gongren ribao, 26 10 1985Google Scholar; Zhongguo laonian, No. 1 (1986), pp. 27–28Google Scholar; Laodong bao, 4 04 1986, p. 1Google Scholar; Renmin ribao, 22 10 1986, p. 3Google Scholar; Renmin ribao, 15 11 1986.Google Scholar

77. This is the pattern I observed during 11 weeks of interviewing in Shanghai in 1986 and 1987.

78. In Shanghai, at least among the getihu this transformation appears already to have occurred. In this sector, which originally was developed to employ young adults, retirees and rural emigrants now dominate. In a December 1985 survey of 111,937 getihu, only 7% were young people waiting for work (daiye). Zhongrui, Xia et al. , “Jiachang yindao guanli, fazhan geti jingji” (“Strengthen manage, develop the private economy”), Shehui kexue, No. 7 (1986), pp. 38–39.Google Scholar

79. Whyte, and Parish, , Urban Life, p. 32.Google Scholar

80. Among the 100 Shanghai retirees I interviewed in June 1987 average pensions were 61 yuan, or 83·5% of last wage, and average post-retirement income was 79 yuan. In addition all Shanghai pensioners received a monthly subsidy of 35 yuan, which meant that the average monthly cash income among those working after retirement was 175 yuan, a sum far in excess of wages among children between 25 and 35.

81. Comparing the number of new entrants to the ranks of the urban zhi yuan with the number of new retirements since December of the previous year, we can estimate that retirements created 31% of new urban jobs in 1979, 39% in 1980, 13% in 1981, 24% in 1982, 31% in 1983, 14% in 1984, and 28% in 1985. For total of retirements see the Table, for number of new entrants 1979–84, Chinese Statistical Yearbook 1985, p. 235Google Scholar, for entrants in 1985, Guangzhao, Yue, 01 1987.Google Scholar