Township and village employment in China: informal but market-oriented

China has a dual labor market, with both a transitional planned employment system and a developing competitive employment system. With respect to their importance to the Chinese economy, state-owned enterprises (SOEs) and township and village enterprises (TVEs) stand in vivid contrast. The authors describe the differences between them and features of their integration-reforming the planned system and maturing the market-oriented one. They compare TVEs with SOEs and present a general picture of the transformation of employment and the development of the labor market in transitional China.