The latest radioeconomics podcast with Dr. Fan Gang contains this bit of information about Chinese workers (starting at about 17:00):
The labor costs remain low for quite a long time. Why? Because, although in the past 20 years, China has relocated 200 million rural labor force into the industries and the service sectors, there's still 200 to 300 [million] workers -- labor workers -- in the farming sector (in the agricultrual). Most of them are waiting to move out. Their wage is even lower. You know, in the blue-collar workers, in the industries now, can make $1000 US Dollar per year., but the rural farmer only make $400 or $500 US Dollars per year. So they are looking for the job too. They are competing in the job market who are already in the sector, in the industries.... They are waiting for more jobs... People are desperate for the jobs.Wal-Mart pays about $100-$120 a month to its associates in China; Wal-Mart's suppliers pay about that to their blue-collar workers. Still, the difference between $40 a month and $100 a month is meaningless to me, and I'm looking for a better way to capture the increase in the standard of living for those that move from farm jobs to city jobs...
[Dr Fan Gang is Director, National Economics Research Institute, China Reform Foundation and Professor, Graduate School, Chinese Academy of Social Sciences (CASS)PR of China. Dr. Fan Gang is a highly distinguished economist trained at the Chinese Academy of Social Sciences]
Later on, he makes a much greater point that the most goods that are "Made in China" are really "Made in Asia", since most of the raw materials from Chinese exports come as imports into China...
Posted by Kevin on October, 10 2005 at 03:02 PM
