Unions Improve Chinese Workers' Welfare - Results from 1,268 Firms
AbstractBased on a survey of 1,268 firms in 12 Chinese cities, this paper empirically studies the effects of unions on three aspects of workers welfare, namely, hourly wages, monthly working hours, and pension coverage. Our baseline results show that unionization increases hourly wage rates by 5.6%, reduces monthly working hours by 1.4%, and raises pension coverage by 12.3%. Taking the endogeneity of unionization into consideration, our 3SLS estimation finds larger effects. These results are robust in the subsample of domestic private enterprises where unions are less common than in other types of firms. Further econometric analysis has established two channels for unions to improve workers welfare, one by encouraging collective wage contracts, and the other by encouraging written contracts.
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Bibliographic InfoPaper provided by East Asian Bureau of Economic Research in its series Microeconomics Working Papers with number 22039.
Date of creation: Jan 2010
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Unionization; Chinese firms;
Find related papers by JEL classification:
- J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
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- Dr. Muhammad Tariq Khan & Prof. Dr. Naseer Ahmed Khan & Khalid Mahmood, 2012. "A Chronological Record Of Problems Of Unionization And Union Functioning In Asia," Far East Journal of Psychology and Business, Far East Research Centre, vol. 9(4), pages 48-56, December.
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