The global financial crisis, well under way by the third quarter of 2008, did not originate in the developing world. It sparked immediate concerns, however, that its effects would be felt widely, particularly in those economies in which a substantial share of the workforce was engaged in export-oriented activities. China met the onset of the crisis with a strong fiscal stimulus program, coupled with active labor market policies, aimed both at providing training to laid-off migrant workers and at supporting the medium- and small-scale enterprises that were more exposed to shocks from the crisis. This chapter reviews evidence on the incidence of shocks related to the financial crisis in China, documents employment effects, and presents evidence of the recovery in 2009.
Giles, J; Park, A.; Fang Cai; Yang Du. Weathering a Storm: Survey-Based Perspectives on Employment in China in the Aftermath of the Global Financial Crisis. In: Working Through the Crisis: Jobs and Policies in Developing Countries during the Great Recession. The World Bank, Washington DC, USA (2013) 163-182. ISBN 978-0-8213-8967-6