Organizational Uncertainty and Labor Contracts in China's Economic Transition

摘要: Lifetime employment was a cornerstone of the Chinese socialist system constructed under Mao. In this system, organizations served function social security, and as result, many were overburdened with bloated work forces retirees that drew from organizational coffers well into old age. Labor contracts fundamentally alter they allow firms to end institution lifetime employment. Yet there is significant variation on institutionalization labor in organizations. Based sample 81 industrial Shanghai, I show are experiencing uncertainty economic transition more likely institutionalize an organizationwide basis. There two types transition: administrative uncertainty. cases uncertainty, lost money 1990 burdened by large retired workers place their contracts. case at highest levels hierarchy also significantly Although these upper level most protected command economy, being forced handle greatest among responsibilities transition, experience sense set adrift state.