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Raising grievances to the state: The political economic effects of anti-corruption crackdowns on labor activism in China

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  • Chen, Huiyi

Abstract

This paper studies how government actions shape workers’ expected returns to striking by exploiting China’s anti-corruption campaign as a natural experiment. Using a city-level dataset linking corruption inspections to strikes from 2011 to 2020, I show that strike incidents rise sharply after a city’s first high-profile inspection, driven largely by wage arrears from private firms and concentrated in the construction and manufacturing sectors. Strikes also spread through network channels, with later-treated and neighboring cities responding to inspections elsewhere. Evidence indicates that inspections weakened firm–government ties and shifted government attention, raising workers’ expected returns and revealing pre-existing grievances among workers.

Suggested Citation

  • Chen, Huiyi, 2026. "Raising grievances to the state: The political economic effects of anti-corruption crackdowns on labor activism in China," Journal of Development Economics, Elsevier, vol. 181(C).
    • Handle: RePEc:eee:deveco:v:181:y:2026:i:c:s0304387826000416
    DOI: 10.1016/j.jdeveco.2026.103758
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    Keywords

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    JEL classification:

    • P00 - Political Economy and Comparative Economic Systems - - General - - - General
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions
    • J83 - Labor and Demographic Economics - - Labor Standards - - - Workers' Rights
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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