Do workers benefit from economic upgrading in the Pearl River Delta, China?

This study investigates the impact of economic upgrading (EU) on workers in China's Pearl River Delta (PRD), focusing on whether and how workers have benefited from this process. Using data from the 2012 and 2014 China Labor-force Dynamic Survey and self-conducted interviews, the study finds that EU has a positive effect on social upgrading (SU), primarily due to state intervention and regulation. State intervention balances EU and SU, resulting in improvements in measurable standards (e.g., wages, social insurance) being greater than improvements in enabling rights (e.g., worker voice). The study also highlights the varying mechanisms through which local states intervene in different aspects of SU, employing flexible governance to balance EU and SU.

Xu Wang, Chris King-Chi Chan, Linchuan Yang