ASP News

Various economic factors are related to prostitution. Low wages, unemployment, social security etc. are factors that should be considered when the reasons for why prostitution exists are explored.

Unemployment and migration

The economic reforms have changed the urban labor market in China, with a huge increase in migration and inflow of labour from rural areas. More than half of these migrants were women between 15 and 40 years old. Because of occupational discrimination they are likely to get less paid than men, and many of them have to earn extra money to survive, making prostitution a convenient alternative. In addition to migration the unemployment is caused by a combination of the shift from state-guaranteed jobs (Iron Rice Bowl), rise in cost of living and decline in employment opportunities.

The unemployment in the urban areas in China is around 4 % of the people in working age, this is equivalent to 7.7 million. However, this is the official number and it is highly likely that the number is much higher. First of all,   unemployment statistics only add up the person who has registered themselves as unemployed.  Second, the amount of migrant workers in the cities is unknown and many of these are not calculated into unemployment statistics.

A reduction in the control of migration combined with the economic development in the early 1980s provided opportunities for people to leave rural areas and to move into urban ones. Today the migration is being controlled and the people from rural areas moving to urban areas are only entitled to obtain work permit for usually dirty, unqualified and underpaid work. These jobs do not grant the migrants any form of social security, which exists in other sectors of the urban job market. Hence the chance of supporting yourself as a migrant is challenging.

The number of women unemployed and women migrants in China is unknown, but the National Women’s Federations(NWF) agencies have assisted 990 000 women who were looking for reemployment.

The public sector has been subjected to rather large cutbacks in recent years, in the state owned enterprises the number of employees has decreased from 112.61 millions in 1995 to 71.63 million in 2005. Employees in collective owned work units have decreased from 36.21 million in 1992 to 11.22 in 2002. Furthermore, as the global financial crisis has slowed down exports, many workers at factories have been laid off. It has, in other words, become increasingly difficult to support oneself.

What is characteristic for the many female migrant workers, is that they are often uneducated. With no education, the possibility of getting a decent-paid job is almost zero. Those who then engage in prostitution have little knowledge about health and sexual transmitted diseases. Furthermore, as many migrant workers are in the cities  without residence permit, they are not entitled to the little social welfare that exists.

Welfare

Since the late 1990s, in order to provide unemployed job seekers and people living under the minimum living standards with some financial relief, three different programs aiming to help unemployed people were created. The Labour Security Programme and the Unemployment Insurance Program ensures basic living expenses for laid-off workers. The Minimum Living Standard Program (MSLP) is helping households by giving them approximately 250 RMB per person every month (in 2002). This is provided for people that make less than 220 RMB per month. In July 2002, the coverage of the MLSP was 15.35 million urban residents. It is argued that the 220 RMB limit per month is too far from an adequate monthly income, the program can therefore not alleviate poverty for all urban residents who might need it. The complications and restrictions involving residence and employment permits often exclude migrants from all forms of social security in the urban areas.

The Chinese labor law provides a minimum wage requirement which is determined at a provincial level. Therefore the minimum wage in China varies greatly all depending on the province in question. The minimum wage in Shanghai has increased 11 percent annually since 2002. In 2008 the minimum wage was raised from 840 RMB per month to 960 RMB per month.

In 2007 the average monthly income of city employees in China was 2,892 RMB, a 17.4 percent increase from 2006. Part time workers salaries are to rise from 7.5 RMB per hour to 8 RMB per hour.

As a result of the unemployment, low wages and lack of social security, prostitution is often the last option Chinese women have. Put up against each other, working 1 hour for 8 RMB or working 1 hour for 200 RMB, the latter seems most attractive for many women.