IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/15350.html

Trade Unions and the Welfare of Rural-Urban Migrant Workers in China

Author

Listed:
  • Booth, Alison
  • Freeman, Richard
  • Meng, Xin
  • Zhang, Jilu

Abstract

Using a panel survey, we investigate how the welfare of rural-urban migrant workers in China is affected by trade union presence at the workplace. Controlling for individual fixed- effects, we find the following. Relative to workers from workplaces without union presence or with inactive unions, both union-covered non-members and union members in workplaces with active unions earn higher monthly income, are more likely to have a written contract, be covered by social insurances, receive fringe benefits, express work-related grievances through official channels, feel more satisfied with their lives, and are less likely to have mental health problems.

Suggested Citation

  • Booth, Alison & Freeman, Richard & Meng, Xin & Zhang, Jilu, 2020. "Trade Unions and the Welfare of Rural-Urban Migrant Workers in China," CEPR Discussion Papers 15350, Centre for Economic Policy Research.
  • Handle: RePEc:cpr:ceprdp:15350
    as

    Download full text from publisher

    File URL: https://cepr.org/publications/DP15350
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Xin Meng, 2017. "The Labor Contract Law, Macro Conditions, Self-Selection, and Labor Market Outcomes for Migrants in China," Asian Economic Policy Review, Japan Center for Economic Research, vol. 12(1), pages 45-65, January.
    2. George R. Boyer & Timothy J. Hatton, 1997. "Migration and Labour Market Integration in Late Nineteenth-Century England and Wales," Economic History Review, Economic History Society, vol. 50(4), pages 697-734, November.
    3. 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.
    4. Zhao, Yaohui, 1999. "Labor Migration and Earnings Differences: The Case of Rural China," Economic Development and Cultural Change, University of Chicago Press, vol. 47(4), pages 767-782, July.
    5. Meng,Xin, 2009. "Labour Market Reform in China," Cambridge Books, Cambridge University Press, number 9780521121118, Enero-Abr.
    6. Koevoets, Wim, 2007. "Union wage premiums in Great Britain: Coverage or membership?," Labour Economics, Elsevier, vol. 14(1), pages 53-71, January.
    7. Freeman, Richard B, 1984. "Longitudinal Analyses of the Effects of Trade Unions," Journal of Labor Economics, University of Chicago Press, vol. 2(1), pages 1-26, January.
    8. Yang Yao & Ninghua Zhong, 2013. "Unions and Workers' Welfare in Chinese Firms," Journal of Labor Economics, University of Chicago Press, vol. 31(3), pages 633-667.
    9. Alison L. Booth, 1985. "The Free Rider Problem and a Social Custom Model of Trade Union Membership," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 100(1), pages 253-261.
    10. Ying Ge, 2014. "Do Chinese Unions Have “Real” Effects On Employee Compensation?," Contemporary Economic Policy, Western Economic Association International, vol. 32(1), pages 187-202, January.
    11. Morley Gunderson & Byron Y Lee & Hui Wang, 2016. "Union pay premium in China: an individual-level analysis," International Journal of Manpower, Emerald Group Publishing Limited, vol. 37(4), pages 606-627, July.
    12. Meng, Xin & Zhang, Junsen, 2001. "The Two-Tier Labor Market in Urban China: Occupational Segregation and Wage Differentials between Urban Residents and Rural Migrants in Shanghai," Journal of Comparative Economics, Elsevier, vol. 29(3), pages 485-504, September.
    13. repec:ilo:ilowps:465654 is not listed on IDEAS
    14. Chris Riddell, 2001. "Union suppression and certification success," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 34(2), pages 396-410, May.
    15. Lu, Yi & Tao, Zhigang & Wang, Yijiang, 2010. "Union effects on performance and employment relations: Evidence from China," China Economic Review, Elsevier, vol. 21(1), pages 202-210, March.
    16. Morley Gunderson & Byron Y Lee & Hui Wang, 2016. "Union pay premium in China: an individual-level analysis," International Journal of Manpower, Emerald Group Publishing Limited, vol. 37(4), pages 606-627, July.
    17. Hao, Tongtong & Sun, Ruiqi & Tombe, Trevor & Zhu, Xiaodong, 2020. "The effect of migration policy on growth, structural change, and regional inequality in China," Journal of Monetary Economics, Elsevier, vol. 113(C), pages 112-134.
    18. Mingwei Liu & Chunyun Li, 2014. "Environment Pressures, Managerial Industrial Relations Ideologies and Unionization in Chinese Enterprises," British Journal of Industrial Relations, London School of Economics, vol. 52(1), pages 82-111, March.
    19. Naylor, Robin & Cripps, Martin, 1993. "An economic theory of the open shop trade union," European Economic Review, Elsevier, vol. 37(8), pages 1599-1620, December.
    20. Traub-Merz, Rudolf., 2011. "All China federation of trade unions : structure, functions and the challenge of collective bargaining," ILO Working Papers 994656543402676, International Labour Organization.
    21. 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.
    22. 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.
    23. Barry Bosworth & Susan M. Collins, 2008. "Accounting for Growth: Comparing China and India," Journal of Economic Perspectives, American Economic Association, vol. 22(1), pages 45-66, Winter.
    24. Sarosh Kuruvilla, 2018. "Editorial Essay: From Cautious Optimism to Renewed Pessimism: Labor Voice and Labor Scholarship in China," ILR Review, Cornell University, ILR School, vol. 71(5), pages 1013-1028, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Björn Becker & Laszlo Goerke & Yue Huang, 2025. "Trade Unions and Life Satisfaction in Germany," British Journal of Industrial Relations, London School of Economics, vol. 63(3), pages 462-477, September.
    2. Brändle, Tobias, 2024. "Unions and Collective Bargaining: The Influence on Wages, Employment and Firm Survival," GLO Discussion Paper Series 1457, Global Labor Organization (GLO).
    3. Hong Chen & Jia Yu & Mingshuai Qin & Yangyang Wang & Lijian Qin, 2023. "Unlocking Opportunities for Migrant Workers in China: Analyzing the Impact of Health Insurance on Hukou Switching Intentions," Sustainability, MDPI, vol. 15(8), pages 1-15, April.
    4. MA, Xinxin & CHENG, Jie, 2023. "The Impact of Trade Unions on the Gender Wage Gap : Evidence from China," Discussion Paper Series 752, Institute of Economic Research, Hitotsubashi University.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Prema†chandra Athukorala & Zheng Wei, 2018. "Economic Transition And Labour Market Dynamics In China: An Interpretative Survey Of The €˜Turning Point’ Debate," Journal of Economic Surveys, Wiley Blackwell, vol. 32(2), pages 420-439, April.
    2. Morley K. Gunderson & Byron Y. Lee & Hui Wang, 2024. "Worker Congresses in China: Do they matter?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 63(1), pages 43-58, January.
    3. Brändle, Tobias, 2024. "Unions and Collective Bargaining: The Influence on Wages, Employment and Firm Survival," GLO Discussion Paper Series 1457, Global Labor Organization (GLO).
    4. 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.
    5. James Bishop & Iris Chan, 2019. "Is Declining Union Membership Contributing to Low Wages Growth?," RBA Annual Conference Papers acp2019-06, Reserve Bank of Australia.
    6. 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.
    7. Jianxuan Lei, 2024. "The importance of legal strength for trade unions: Theory and evidence from China," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 63(4), pages 491-511, October.
    8. Prema-chandra Athukorala & Zheng Wei, 2015. "Economic Transition and Labour Market Dynamics in China: An Interpretative Survey of the ‘Turning Point’ Debate," Departmental Working Papers 2015-06, The Australian National University, Arndt-Corden Department of Economics.
    9. 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.
    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. Walsh, Frank, 2013. "The union wage effect and ability bias: Evidence from Ireland," Economics Letters, Elsevier, vol. 119(3), pages 296-298.
    12. Edward J. Schumacher, "undated". "What Explains Union Membership Contract Coverage Wage Differentials?," Working Papers 9719, East Carolina University, Department of Economics.
    13. Edward J. Schumacher, 1999. "What Explains Wage Differences Between Union Members and Covered Nonmembers?," Southern Economic Journal, John Wiley & Sons, vol. 65(3), pages 493-512, January.
    14. Song, Yang & Yang, Jidong & Yang, Qijing, 2016. "Do firms' political connections depress the union wage effect? Evidence from China," China Economic Review, Elsevier, vol. 38(C), pages 183-198.
    15. Dong, Zhiqiang & Luo, Zijun & Wei, Xiahai, 2016. "Social insurance with Chinese characteristics: The role of communist party in private firms," China Economic Review, Elsevier, vol. 37(C), pages 40-51.
    16. 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.
    17. Xiahai Wei & Tony Fang & Yang Jiao & Jiahui Li, 2019. "Language Premium Myth or Fact: Evidence from Migrant Workers of Guangdong, China," Journal of Labor Research, Springer, vol. 40(3), pages 356-386, September.
    18. Cheng, Zhiming, 2022. "Communist Party branch and labour rights: Evidence from Chinese entrepreneurs," China Economic Review, Elsevier, vol. 71(C).
    19. Ninghua Zhong & Shujing Wang & Rudai Yang, 2017. "Erratum to: Does Corporate Governance Enhance Common Interests of Shareholders and Primary Stakeholders?," Journal of Business Ethics, Springer, vol. 141(2), pages 433-433, March.
    20. 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.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • P21 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Planning, Coordination, and Reform
    • P30 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:15350. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CEPR (email available below). General contact details of provider: https://cepr.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.