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Chinese Unions and Enterprises Performance

Author

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  • 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 for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp7870
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    References listed on IDEAS

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    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. Barry T. Hirsch, 2004. "What Do Unions Do for Economic Performance?," Journal of Labor Research, Transaction Publishers, vol. 25(3), pages 415-456, July.
    3. 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.
    4. Bruce E. Kaufman, 2004. "What Unions Do: Insights from Economic Theory," Journal of Labor Research, Transaction Publishers, vol. 25(3), pages 351-382, July.
    5. Simon Clarke & Chang-Hee Lee & Qi Li, 2004. "Collective Consultation and Industrial Relations in China," British Journal of Industrial Relations, London School of Economics, vol. 42(2), pages 235-254, June.
    6. Sergio Godoy & Joseph Stiglitz, 2006. "Growth, Initial Conditions, Law and Speed of Privatization in Transition Countries: 11 Years Later," NBER Working Papers 11992, National Bureau of Economic Research, Inc.
    7. Mark Doms & Eric J. Bartelsman, 2000. "Understanding Productivity: Lessons from Longitudinal Microdata," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 569-594, September.
    8. 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.
    9. John W. Budd, 2004. "Non-Wage Forms of Compensation," Journal of Labor Research, Transaction Publishers, vol. 25(4), pages 597-622, October.
    10. Fang, Tony & Ge, Ying, 2012. "Unions and firm innovation in China: Synergy or strife?," China Economic Review, Elsevier, vol. 23(1), pages 170-180.
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    Citations

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    Cited by:

    1. 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.
    2. Laureen Albarrán Díaz de León & Jerjes Aguirre Ochoa, 2014. "Analyzing Organized Crime From A Business Perspective: The Case Of Mexican Meth Mafia," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 4(9), pages 977-990, September.

    More about this item

    Keywords

    unions; laws; productivity; profitability; China;

    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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