This thesis examines the effects of economic reforms on their benefits and wage distribution mechanisms of state enterprises. In the first part of the paper, I describe the labor system reform and identify the determinants of working incentives. The second part details the responses of workers towards reform and illuminates the increasing tendency for illegitimate elements to play a significant role in the distribution. Managerial class is raising up to be new "earth emperors" of the enterprises. On the other hand, the formality of the labor unions and Workers' Congress make problems worse and helps to induce a helpless feeling among workers. Ordinary workers are claimed to be deprived individuals during the transition period as the role of the factory as an institution is modified. The...[ Read more ]

This thesis examines the effects of economic reforms on their benefits and wage distribution mechanisms of state enterprises. In the first part of the paper, I describe the labor system reform and identify the determinants of working incentives. The second part details the responses of workers towards reform and illuminates the increasing tendency for illegitimate elements to play a significant role in the distribution. Managerial class is raising up to be new "earth emperors" of the enterprises. On the other hand, the formality of the labor unions and Workers' Congress make problems worse and helps to induce a helpless feeling among workers. Ordinary workers are claimed to be deprived individuals during the transition period as the role of the factory as an institution is modified. The final part points out how the interplay between reform and power give rise to the dynamics of institutional changes. Political reform is a way to resolve this "chaotic" situation.