Author: Cai Fang, CASS

The rapid increase in the wages of unskilled workers in China is well documented. Since the initial appearance of labour shortages in 2003, wages have increased substantially in all sectors.

In the period 2003 to 2008, the annual growth rate of monthly wages in real terms was 10.5 per cent in manufacturing, 9.8 per cent in construction, and 10.2 per cent for migrant workers. Read more…

Author: Cai Fang and Wang Meiyan, CASS

Migrant worker wages have steadily increased since 2003, the year that significantly witnessed the first labour shortage in Chinese economic development. Not only have the wages in manufacturing and construction increased constantly, reflecting a more general rise in wages, migrant workers’ wages have been catching up to urban wages as well.

Investors fear that inflated migrant wage rates may weaken the comparative advantage of China’s labour-intensive industries and thus harm their commodities’ competitiveness.

Why are migrant worker wages increasing? Read more…