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Union effects on performance and employment relations: Evidence from China

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Author Info

  • Lu, Yi
  • Tao, Zhigang
  • Wang, Yijiang

Abstract

This paper empirically studies union effects on the performance of, and employment relations in, China's private enterprises. The study finds a positive and statistically significant union effect on labor productivity, but not on profitability. It further finds that unions lead to better employee benefits and increased contract signing in employment. These findings suggest that, in the era of transition from a centrally planned to a market economy, unions in China's private enterprises do promote workers' interests as unions do in other economies. And they do that without abandoning their traditional role of harmonizing employment relations, as required by the Party.

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Bibliographic Info

Article provided by Elsevier in its journal China Economic Review.

Volume (Year): 21 (2010)
Issue (Month): 1 (March)
Pages: 202-210

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Handle: RePEc:eee:chieco:v:21:y:2010:i:1:p:202-210

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Web page: http://www.elsevier.com/locate/chieco

Related research

Keywords: Unions Labor productivity Profitability Transitional economy Employment relations;

References

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  1. Chong-En Bai & Jiangyong Lu & Zhigang Tao, 2006. "Property rights protection and access to bank loans," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 14(4), pages 611-628, October.
  2. Addison, John T & Hirsch, Barry T, 1989. "Union Effects on Productivity, Profits, and Growth: Has the Long Run Arrived?," Journal of Labor Economics, University of Chicago Press, vol. 7(1), pages 72-105, January.
  3. John W. Budd, 2004. "Non-Wage Forms of Compensation," Journal of Labor Research, Transaction Publishers, vol. 25(4), pages 597-622, October.
  4. Richard B. Freeman & James L. Medoff, 1979. "The Two Faces of Unionism," NBER Working Papers 0364, National Bureau of Economic Research, Inc.
  5. Montgomery, Edward, 1989. "Employment and Unemployment Effects of Unions," Journal of Labor Economics, University of Chicago Press, vol. 7(2), pages 170-90, April.
  6. Barry T. Hirsch, 2004. "What Do Unions Do for Economic Performance?," Journal of Labor Research, Transaction Publishers, vol. 25(3), pages 415-456, July.
  7. Freeman, Richard Barry, 1984. "Longitudinal Analyses of the Effects of Trade Unions," Scholarly Articles 4631951, Harvard University Department of Economics.
  8. Barry T. Hirsch, 2004. "Reconsidering Union Wage Effects: Surveying New Evidence on an Old Topic," Journal of Labor Research, Transaction Publishers, vol. 25(2), pages 233-266, April.
  9. Richard B. Freeman, 1985. "Unions, Pensions, and Union Pension Funds," NBER Chapters, in: Pensions, Labor, and Individual Choice, pages 89-122 National Bureau of Economic Research, Inc.
  10. Menezes-Filho, Naercio & Van Reenen, John, 2003. "Unions and Innovation: A Survey of the Theory and Empirical Evidence," CEPR Discussion Papers 3792, C.E.P.R. Discussion Papers.
  11. John W. Budd & Brian McCall, 1997. "The effect of unions on the receipt of unemployment insurance benefits," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 50(3), pages 478-492, April.
  12. Richard B. Freeman, 1981. "The effect of unionism on fringe benefits," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 34(4), pages 489-509, July.
  13. Thomas C. Buchmueller & John DiNardo, 2001. "Union Effects on Health Insurance Provision and Coverage in the United States," NBER Working Papers 8238, National Bureau of Economic Research, Inc.
  14. Edward Montgomery & Kathryn Shaw, 1992. "Pensions and Wage Premia," NBER Working Papers 3985, National Bureau of Economic Research, Inc.
  15. Laroche, P., 2000. "What do Unions do to Productivity? A Meta-Analysis," Papers 2000-5, Groupe de recherche en économie financière et en gestion des entreprises, Universite Nancy 2.
  16. Steven G. Allen & Robert L. Clark, 1986. "Unions, pension wealth, and age-compensation profiles," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 39(4), pages 502-517, July.
  17. Peter Kuhn, 1998. "Innis Lecture: Unions and the Economy: What We Know; What We Should Know," Canadian Journal of Economics, Canadian Economics Association, vol. 31(5), pages 1033-1056, November.
  18. Toke Aidt & Zafiris Tzannatos, 2002. "Unions and Collective Bargaining : Economic Effects in a Global Environment," World Bank Publications, The World Bank, number 15241, January.
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Cited by:
  1. Rickne, Johanna, 2012. "Labor Market Conditions and Social Insurance in China," Working Paper Series 924, Research Institute of Industrial Economics.
  2. Rickne, Johanna, 2013. "Labor market conditions and social insurance in China," China Economic Review, Elsevier, vol. 27(C), pages 52-68.

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