Prior research showed that~danwei, the work unit, was very important in determining workers{\textquoteright} social, economic, and political lives in pre-reform urban China. In this paper, we argue that~danwei~continues to be an agent of social stratification in contemporary urban China. Using data from a 1999 survey we conducted in three large Chinese cities, Wuhan, Shanghai, and Xi{\textquoteright}an, we assess the extent to which workers{\textquoteright} socioeconomic well-being depends on the financial conditions of their~danwei. Results show that the financial situation of~danweiremains one of the most important determinants of earnings and benefits. However, the explanatory power of~danwei{\textquoteright}s financial situation is much greater for earnings than for benefits.