Pro-employment budgeting in China: Linking employment to national and local budgets

EMPLOYMENT Working Paper No. 173

A series of case studies has been launched to better understand how to efficiently link employment objectives to budget allocations and expenditures. This Working Paper is the first of the series. The experience of China is interesting for three main reasons: the employment strategy promotes an employment-friendly economic development model; since 2002; a system to finance employment policies has been efficiently functioning; and the 2008 Employment Promotion Law established an employment fund with linkages to the national and local budgets. Fascinating lessons emerge from this experience.