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Unions Improve Chinese Workers' Welfare - Results from 1,268 Firms

Author

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  • Yang Yao

    (China Center for Economic Research)

  • Ninghua Zhong

Abstract

Based 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.

Suggested Citation

  • Yang Yao & Ninghua Zhong, 2010. "Unions Improve Chinese Workers' Welfare - Results from 1,268 Firms," Microeconomics Working Papers 22039, East Asian Bureau of Economic Research.
  • Handle: RePEc:eab:microe:22039
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    File URL: http://www.eaber.org/node/22039
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    Cited by:

    1. 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.

    More about this item

    Keywords

    Unionization; Chinese firms;

    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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