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Chinese Unions and Enterprises Performance

Author

Listed:
  • Fang, Tony

    (Memorial University of Newfoundland)

  • Ge, Ying

    (School of International Trade and Economics, Beijing)

Abstract

This paper uses the national firm level survey data to investigate the effects of Chinese unions on firm performance. We show that Chinese unions have a strong "State-Party voice" face and a "collective voice" face but lack of "monopoly" face. The government influence plays an important role in unionization. The empirical findings on the effectiveness of unions are remarkable: unions in the workplace significantly improve productivity but reduce enterprise profitability. Moreover, the presence of unions in same region and industry generates negative spillovers on enterprise performance.

Suggested Citation

  • Fang, Tony & Ge, Ying, 2013. "Chinese Unions and Enterprises Performance," IZA Discussion Papers 7870, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp7870
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    File URL: https://docs.iza.org/dp7870.pdf
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    References listed on IDEAS

    as
    1. Richard B. Freeman, 2005. "What Do Unions Do?-- The 2004 M-Brane Stringtwister Edition," Journal of Labor Research, Transaction Publishers, vol. 26(4), pages 641-668, November.
    2. 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.
    3. Sergio Godoy & Joseph E. Stiglitz, 2007. "Growth, Initial Conditions, Law and Speed of Privatization in Transition Countries: 11 Years Later," Studies in Economic Transition, in: Saul Estrin & Grzegorz W. Kolodko & Milica Uvalic (ed.), Transition and Beyond, chapter 4, pages 89-117, Palgrave Macmillan.
    4. Hirsch, Barry T, 1991. "Union Coverage and Profitability among U.S. Firms," The Review of Economics and Statistics, MIT Press, vol. 73(1), pages 69-77, February.
    5. Fang, Tony & Ge, Ying, 2012. "Unions and firm innovation in China: Synergy or strife?," China Economic Review, Elsevier, vol. 23(1), pages 170-180.
    6. Malcolm Warner & Ng Sek-Hong, 1999. "Collective Contracts in Chinese Enterprises: A New Brand of Collective Bargaining under ‘Market Socialism’?," British Journal of Industrial Relations, London School of Economics, vol. 37(2), pages 295-314, June.
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    8. John T. Addison & Claus Schnabel (ed.), 2003. "International Handbook of Trade Unions," Books, Edward Elgar Publishing, number 2705.
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    10. Bruce E. Kaufman, 2004. "What Unions Do: Insights from Economic Theory," Journal of Labor Research, Transaction Publishers, vol. 25(3), pages 351-382, July.
    11. David G. Blanchflower & Alex Bryson, 2004. "What Effect Do Unions Have on Wages Now and Would Freeman and Medoff Be Surprised?," Journal of Labor Research, Transaction Publishers, vol. 25(3), pages 383-414, July.
    12. Barry T. Hirsch, 2004. "What Do Unions Do for Economic Performance?," Journal of Labor Research, Transaction Publishers, vol. 25(3), pages 415-456, July.
    13. John W. Budd, 2004. "Non-Wage Forms of Compensation," Journal of Labor Research, Transaction Publishers, vol. 25(4), pages 597-622, October.
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    Cited by:

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    3. Riedel, Nadine & Stüber, Robert, 2019. "Overearning – Revisited," Journal of Economic Psychology, Elsevier, vol. 75(PA).

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    More about this item

    Keywords

    unions; laws; productivity; profitability; China;
    All these keywords.

    JEL classification:

    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence

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