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Social insurance with Chinese characteristics: The role of communist party in private firms

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  • Dong, Zhiqiang
  • Luo, Zijun
  • Wei, Xiahai

Abstract

This paper studies the inter-correlation among the Communist Party of China (CPC), unionization, and social insurance in a sample of Chinese private firms. We find that both Party branch and unionization are positively associated with insurance coverage. We further present evidence that Party branch and unionization are complements in association with better coverage of social insurance. When the Party–union complementarity is taken into account, Party branch alone is no longer positively associated with social insurance, while the correlation between unionization and insurance declines significantly. Our results suggest that the role of the CPC is overlooked in the literature on labor relations in China.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:chieco:v:37:y:2016:i:c:p:40-51
    DOI: 10.1016/j.chieco.2015.09.009
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    Cited by:

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    More about this item

    Keywords

    Communist Party of China; Unionization; Employee benefits;
    All these keywords.

    JEL classification:

    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J83 - Labor and Demographic Economics - - Labor Standards - - - Workers' Rights
    • P26 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Property Rights

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