Dispatched labor is widely regarded as a flexible form of employment, as evidenced by its assimilation to temporary work. However, this dissertation finds that the practice of labor dispatch in China exhibits objective realities beyond flexibility, which previous frameworks based on Western experiences of temporary agency work struggle to explain. This leads us to consider the specific reality of what is known as “dispatched labor”.

Based on fieldwork conducted in Hefei, China, this dissertation draws upon data from legal and policy documents, participatory observations in two dispatch agencies, and interviews with 63 participants. From the perspectives of the state, dispatch agencies, user entities, and dispatched workers, it explores how labor dispatch in China demonstrates characteristics beyond flexibility in institutional dynamics and organizational practices and investigates the underlying structural reasons.

This dissertation analyzes: 1. The evolution of the labor dispatch system embedded in China’s transition from a planned economy to a market economy. 2. The strategies employed by dispatch agencies to seek clients and job seekers, and the formation of intermediary chains and profit mechanisms. 3. The reasons why client entities use labor dispatch and their labor management practices concerning dispatched workers. 4. The reasons why workers choose labor dispatch and their work experiences within user entities.

Why does an employment form considered a labor flexibility strategy in other countries produce different outcomes in China? The study points out that the state, employers, user entities, and workers jointly shape the characteristics of China’s labor dispatch that transcend flexibility. The state views labor dispatch as a tool to balance economic development and social stability. The Labor Contract Law in 2007 reflects the state’s oscillation between being pro-employer and pro-labor, ultimately leading to the proliferation of long-term labor dispatch in China. Secondly, stable and continuous sources of workers and clients are crucial to the profitability of dispatch agencies, prompting them to limit flexibility through contracts, rebates, and other means. Furthermore, many entities employ dispatched workers not for flexible employment but due to factors unrelated to flexibility—such as reducing labor costs and risks, improving efficiency, and circumventing limitations on staffing and total wages. Consequently, a large number of dispatched workers are placed in long-term, core positions. Finally, due to structural pressures and concerns about income uncertainty, dispatched employees find it difficult to fully enjoy the right to flexible choices.