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What Do Unions in China Do? Provincial-Level Evidence on Wages, Employment, Productivity, and Economic Output

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  • John Budd
  • Wei Chi
  • Yijiang Wang
  • Qianyun Xie

Abstract

Utilizing provincial-level data from the period of 1994–2008, this article studies the relationship between union density and wages, employment, productivity, and economic output in China. The findings indicate that union density does not affect average wage levels, but is positively associated with aggregate productivity and output. We discuss if and to what extent these findings are consistent with the familiar two faces of unions model and alternative explanations relevant in the context of Chinese labor and union institutions. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • John Budd & Wei Chi & Yijiang Wang & Qianyun Xie, 2014. "What Do Unions in China Do? Provincial-Level Evidence on Wages, Employment, Productivity, and Economic Output," Journal of Labor Research, Springer, vol. 35(2), pages 185-204, June.
    • Handle: RePEc:spr:jlabre:v:35:y:2014:i:2:p:185-204
    DOI: 10.1007/s12122-014-9178-4
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    References listed on IDEAS

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    Cited by:

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    2. Wang, Wen & Lien, Donald, 2018. "Union membership, union coverage and wage dispersion of rural migrants: Evidence from Suzhou industrial sector," China Economic Review, Elsevier, vol. 49(C), pages 96-113.
    3. Wenjing Duan & Pedro S. Martins, 2022. "Rent sharing in China: Magnitude, heterogeneity and drivers," British Journal of Industrial Relations, London School of Economics, vol. 60(1), pages 176-219, March.
    4. Horwitz, Frank M. & Cooke, Fang Lee, 2021. "Labor-management Relations in Emerging Economies and Developing Countries," GLO Discussion Paper Series 969, Global Labor Organization (GLO).
    5. Andy W. Chan & Ed Snape & Michelle S. Luo & Yujuan Zhai, 2017. "The Developing Role of Unions in China's Foreign-Invested Enterprises," British Journal of Industrial Relations, London School of Economics, vol. 55(3), pages 602-625, September.
    6. Jiang, Xiandeng & Yang, Jin & Yang, Wei & Zhang, Jian, 2021. "Do employees’ voices matter? Unionization and corporate environmental responsibility," International Review of Economics & Finance, Elsevier, vol. 76(C), pages 1265-1281.
    7. Dobbelaere, Sabien & Wiersma, Quint, 2020. "The Impact of Trade Liberalization on Firms' Product and Labor Market Power," IZA Discussion Papers 12951, Institute of Labor Economics (IZA).
    8. Alison Booth & Richard Freeman & Xin Meng & Jilu Zhang, 2022. "Trade Unions and the Welfare of Rural-Urban Migrant Workers in China," ILR Review, Cornell University, ILR School, vol. 75(4), pages 974-1000, August.
    9. Muzhi Wang & Weichen Yan, 2022. "Brain Gain: The Effect of Employee Quality on Corporate Social Responsibility," Abacus, Accounting Foundation, University of Sydney, vol. 58(4), pages 679-713, December.
    10. Chih‐Hai Yang & Meng‐Wen Tsou, 2018. "Labour Unions and Firm Productivity: Evidence from China," Manchester School, University of Manchester, vol. 86(6), pages 699-721, December.
    11. Quint Wiersma, 2019. "The impact of WTO accession on Chinese firms' product and labor market power," Tinbergen Institute Discussion Papers 19-037/V, Tinbergen Institute.

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    Keywords

    Labor unions; China; Wages;
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