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Welfare Programme Participation and the Wellbeing of Non-local Rural Migrants in Metropolitan China: A Social Exclusion Perspective

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Abstract

China has seen an unprecedented increase in rural-to-urban migrants in the last three decades, and the extension of welfare programmes to these migrants has been a public concern in urban society. The wellbeing of rural-to-urban migrants is closely associated with their access to various welfare programmes. Although pilot reforms on social insurance extension, which often require co-contribution from both employers and employees, have been implemented in several cities, the participation rate remains low. Participation in non-contributory welfare programmes is closely related to the hukou status, which is also undergoing reform. From a social exclusion perspective, this paper examines the critical issues in China’s welfare reforms in relation to the wellbeing of rural to urban migrants. Using qualitative data on welfare programme participation on both institutional and individual levels, this paper argues that the trends of welfare marketization and decentralization lead the welfare provision system to be more selective than universal. This welfare selectivity helps rural migrants with higher economic status become integrated into urban society and enjoy a sense of belonging in cities, while also creating a dual exclusion for rural migrant workers who are disadvantaged in the urban labour market. Individual-level factors, including employment selectivity, information obtainment, settlement intention, and confidence in future reform, influence the choice to participate in welfare programmes. This paper calls for an increased centralization in welfare system reforms.

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Notes

  1. Although the one-child policy is not as strict in rural China as it is in urban areas, the notion of having only one child has been widely accepted by many rural families.

  2. As rural and urban people are divided through the hukou system, welfare entitlements and management are also organized through this system. Abolition of the hukou division is widely considered an essential way of solving social inequality in China.

  3. The participation rates of urban employees in five urban insurance schemes = the number of urban employees who participate in a particular insurance scheme/the total number of urban employees.

  4. Welfare surrender is the action whereby a welfare beneficiary withdraws from the contribution pool and receives a welfare refund.

  5. In 2003, the State Council Office issued No. 1 document on “improving service management on migrant workers’ employment in the city” (< 关于做好农民工进城务工就业管理的服务工作的通知 >).

  6. Guangdong was the first province to implement the points test policy of granting local urban hukou status to rural migrants. Its early target population was local rural migrants. Refer to http://www.chinaacc.com/new/63_74_/2010_6_8_lv2857213388601023984.shtml, retrieved on January 31, 2016.

  7. During the state’s socialist period, individuals received welfare benefits from the government and work units. Welfare coverage included all urban workers, who not only were allocated permanent employment but also enjoyed cradle-to-grave welfare benefits. This scheme was called the ‘iron rice bowl’.

  8. Three notices issued by Guangzhou Municipal Human Resources and Social Security Bureau (GMHRSSB) in 2006, 2007 and 2010, respectfully. The details refer to GMHRSSB (2006) “Notice on Extending Coverage of Working Injury Insurance in Guangzhou and Measures for Rural Migrant Workers’ Participation in Working injury insurance” (<关于广州市工伤保险扩面和农民工先行参加工伤保险若干操问题的通知 >), GMHRSSB (2007) “Notice on Rural Migrant Workers in Construction Sector prior in Participating Working Injury Insurance” (<关于广州市建筑施工企业农民工先行参加工伤保险的通知>), and GMHRSSB (2010) “Issues of Rural Migrant Workers in Participating Working Injury Insurance” (<关于农民工参加工伤保险有关问题的通知(2010)>).

  9. The details refer to GMHRSSB (2009) “Notice on Issues of Non-Guangzhou Urban Hukou Holders Participation in Basic Medical Insurance” (<非广州市城镇户籍从业人员参加基本医疗保险有关问题的通知>), GMHRSSB (2011) “Notice on Tentative Measures of Flexible Workers Participation in Basic Medical Insurance” (<印发广州市城镇灵活就业人员基本医疗保险试行办法的通知>) and GMHRSSB (2012) “Notice on Issues of expiry of < Non-Guangzhou Hukou Holders Participation in Basic Medical Insurance” (<关于非广州市城镇户籍从业人员参加基本医疗保险有关问题的通知’有效期届满有关问题的通知 >). The reform process is to gradually integrate non-local migrants into the urban insurance system.

  10. Refer to GMHRSSB (2007) “Notice on Medical Expenses of Non-local Urban Hukou Holders Participation in Maternity Insurance” (<关于非本市城镇户籍职工参加生育保险有关医疗费问题的通知 >).

  11. The most recent “Regulations on Unemployment Insurance in Guangdong Province” (< 广东省失业保险条例 >) went into effect in 2014.

  12. Refer to Shanghai Municipal Government (2002) “Tentative Measures of Non-local Employees Participation in Shanghai Comprehensive Insurance” (<上海市外来从业人员综合保险暂行办法>).

  13. In 2009, Shanghai Municipal Human Resources and Social Security Bureau (SMHRSSB) issued the “Notice on Several Issues of Migrant Workers Participation in Urban Endowment Insurance” (<关于外来从业人员参加本市城镇职工基本养老保险若干问题的通知>), and this policy was modified in 2011 with the issue of the “Notice on Relevant Issues of Migrant Workers Participation in Urban Endowment Insurance” (<上海市人民政府关于外来从业人员参加本市城镇职工基本养老保险有关问题的通知>). The “Notice on Several Issues of Migrant Workers Participation in Urban Medical Insurance” (<上海市人民政府关于外来从业人员参加城镇职工基本医疗保险若干问题通知>) was also issued in 2011. These policies are designed to integrate certain migrants into the urban local employee insurance system.

  14. If rural–urban migrants transition to participate in local urban insurance schemes, there is a five-year transitional period with a lower contribution rate, after which their contribution and beneficial level will be the same as those of local urbanites. Rural migrants are required to participate in at least three local urban insurance schemes—aging insurance, medical insurance and industrial injury insurance—or to participate in all five major schemes if their employers are willing to contribute.

  15. Refer to http://www.12333sh.gov.cn/201412333/xxgk/zcjd/201405/t20140505_1178894.shtml, accessed on January 6, 2016.

  16. The State Council issued “Opinions on Building Up a Unified Urban and Rural Resident Pension Scheme” (<国务院关于建立统一的城乡居民基本养老保险制度的意见>) in 2014.

  17. The market transformation also brings a process of fiscal decentralization. In addition to a national tax contribution, counties and their subordinate townships are responsible for raising most of their revenue for expenditure on overheads, administrators’ salaries, social security, and public works (Murphy 2006).

  18. Guangzhou implemented the blue seal hukou policy in 2000, and Shanghai implemented this policy in 1994. Shanghai and Guangzhou terminated the blue seal hukou in 2002 and 2007, respectively, due to an overwhelming number of migrants. Tianjin stopped this programme in 2014 and later implemented a new residence plan.

  19. Shanghai Municipal Government (1993) “Tentative Regulations on Management of Shanghai Blue Sealed Hukou” (<上海市蓝印户口管理办法>).

  20. Guangzhou Municipal Government (1999) “Tentative Regulations on Management of Guangzhou Blue Sealed Hukou” (<广州市蓝印户口管理办法>).

  21. The Detailed Measures of Transferring Residential Card Holders into Local Urban Registry in Shanghai (2009) (<持有上海市居住证申办本市常住户口试行办法>) and the Management Measures of Point Redemption Policy in Guangzhou (2014) (<广州市积分制入户管理办法>) have opened windows for investors to apply for local urban hukou registration.

    The Detailed Measures of Transferring Residential Card Holders into Local Urban Registry in Guangzhou(<持有上海市居住证申办本市常住户口试行办法>).

  22. Refer to “Guidelines (2015) for the Talents in Applying for Local Urban Hukou Registration In Shanghai” (<上海市引进人才申办本市常住户口办事指南>).

  23. Refer to “Management of the Talents in Applying for Local Urban Hukou Registration In Guangzhou” (<广州市引进人才入户管理办法 >).

  24. The Shanghai Point Redemption Policy was enacted in 2013. Refer to http://gw.yjbys.com/xize/8611.html, access on January 30, 2016.

  25. Refer to http://www.mlr.gov.cn/zljc/201407/t20140730_1325364.htm, “Opinions of State Council on Further reforming the hukou system in China” (<国务院关于进一步推进户籍制度改革的意见>), accessed on 31 January 2016.

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Acknowledgments

The writing of this paper was supported by the China National Social Science Fund—Youth Project ‘Welfare Attitudes of Migrants and Welfare Inequality in China' (Project Number: 12CSH085), Pujiang Talented Program (12PJC070) and International Macquarie University Research Excellence Scholarship (iMQRES).

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  1. School of Economics and Management, Tongji University, Shanghai, China

    Yeqing Huang

  2. Department of Marketing and Management, Macquarie University, North Ryde, NSW, Australia

    Fei Guo

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Correspondence to Fei Guo.

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Huang, Y., Guo, F. Welfare Programme Participation and the Wellbeing of Non-local Rural Migrants in Metropolitan China: A Social Exclusion Perspective. Soc Indic Res 132, 63–85 (2017). https://doi.org/10.1007/s11205-016-1329-y

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