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The work environment in Chinese factories is a unique combination of elements in socialist central planning, traditional kinship ties, and market competition. These factors have varying consequences on employees’ job satisfaction, work commitment and workplace interest articulation. Market reform changed the social contract between the government and workers. It brought higher wages, but less security and more market whip. The changing social contract had a mixed effect on work satisfaction and commitment, and resulted in increased managerial authority and declining bargaining power among workers. Data are drawn from a 1991–1992 enterprise employee survey in 100 firms.
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