Short Hours of Work, Long Hours of Work, and Work Hours Mismatch in China's Labor Market

There are workers who either have very short hours of work or very long hours of work in China. The proportions of both groups are increasing in recent years, which negatively affects the employment quality. Based on micro-survey data, this report describes the characteristics of short and long hours of work in China using numerous datasets and analyzes the reasons behind these two issues. It argues that short hours of work are mainly driven by aggregate demand shortage during economic downturns. 

Additionally institutional redundancy is also an important contributing factor to hours of work. The reasons behind long hours of work are more complex, including competition in product markets, labour market monopsony, technological advancements, and declining labor supply. This report presents theoretical explanations for the polarization of work hours in recent years from the perspective of aggregate demand shortage. It also describes and analyzes the phenomenon of work hours mismatch in China.

Finally, the report offers suggestions for improving work hours mismatch and enhancing employment quality, focusing on five areas: labour market regulations, technological advancements, demographic changes, remote work, and statistical indicators.