ABSTRACT
The urban-rural dual structure in Chinese economy makes the labor relations between employers and employees more complex and diversified. This chapter describes new empirical data to analyze urban-rural hukou disparities in several labor relation factors. It presents the data and outlines the method of Blinder-Oaxaca decomposition. The labor relations between employers and employees are becoming increasingly important and are experiencing some radical changes. The urban-rural disparities in China’s labor relations may be due to two factors. The first is the differences in individual productivity-related characteristics and the characteristics of enterprises. The second is non-productivity-related characteristics, such as race, gender, or in our case, hukou status, which also could affect the labor relation status. It is an obligation for enterprises to provide social insurance, which is also an important part of labor relations. According to relevant policies, rural workers are also included in social insurance systems, and enterprises have obligations to provide all kinds of insurances for them.
