Life-long tenure job security, providing employment on massive level to the ones willing to work was among the outstanding aspects of Socialist economy present in China. Despite the focus being promotion of labor in the scheme the reformers instead targeted the labor market. The industries were being filled with people to promote socialist goals also, the job-security reduced workers’ intention to work. More jobs were being provided on lifelong job security but the results weren’t satisfactory. The reformers however, dismantled the policy of ‘iron rice bowl’ which resulted in adverse impacts like higher levels of unemployment.
State in order to resolve the uprising conflicts due to the reforms increased the wages of workers but since the inflation rise by 6 to 7 % this remedy too didn’t proved to be effective in controlling the market chaos. The workers were receiving more money but it valued less due to the inflation rise. A short-term solution of distributing wage subsidies was sought to deal with the problem.
The data collected in 1982 provided the statistical data for the working population of China. The data allowed having a look at the labor’s size and determining its characteristics. This sample tabulation was called the 10-percent sample. The quality of data was reliable and it contained quite light difference from the regular employment statistics (Rose, 2004).