This paper examines approaches to helping laid-off
workers overcome
adversity. P revious studies have focused on the effects
of market demand and institutional a rrangements. We argue that the increasing opening-up and market-oriented trans fo rmation, plus rapid economic growth, have provided more opportunities for people to adapt themselves to changes in the new reform period with interactions betwe en social structure and individual choice. Based on a survey sample during Augus t and September of 2002 of 1,000 laid-off workers in 4 cities in Liaoning provi n ce, where resources have been exhausted, we find that, contrary to our hypothesi s, laid-off workers suffered from “human
capital failure” in terms of income dec ision, class identification and social attitudes. In other words, their accumula ted human capital (education, technical identity, work experience) no longer pla ys a role in improving their income level and rationalizing their social attitud es. This is mainly due to the rupture of their human capital accumulation and th e changing occupational structure and market demands for knowledge. Therefore, a side from more job opportunities, policies should be made to provide more traini ng courses to prepare laid-off workers for new posts in new trades, and to equi p them for more choices in the market and help them overcome
adversity.