Reemployment and government job policies in China: the case of Shanghai

Policies to increase reemployment and lower unemployment have topped China¿s political agendas over the past few years. Efforts on both fronts have received support and stimulus at provincial and local levels, but progress to improve labour market conditions remains uneven, with large imbalances between regions and sectors. Policy makers are still striving to identify best practices for making work pay and for developing active and preventive approaches for persons faced with the threat of xigang, a unique phenomenon in this transitional economy. The aim of this paper, using Shanghai as a case, is to provide insights of the nature and dimensions of xiagang, and analysis of impacts and limits of alternative policies prevailing in China.