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What Do Unions in China Do? Provincial-Level Evidence on Wages, Employment, Productivity, and Economic Output

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  • John Budd
  • Wei Chi
  • Yijiang Wang
  • Qianyun Xie

Abstract

Utilizing provincial-level data from the period of 1994–2008, this article studies the relationship between union density and wages, employment, productivity, and economic output in China. The findings indicate that union density does not affect average wage levels, but is positively associated with aggregate productivity and output. We discuss if and to what extent these findings are consistent with the familiar two faces of unions model and alternative explanations relevant in the context of Chinese labor and union institutions. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • 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.
    • Handle: RePEc:spr:jlabre:v:35:y:2014:i:2:p:185-204
    DOI: 10.1007/s12122-014-9178-4
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    References listed on IDEAS

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    3. Dobbelaere, Sabien & Wiersma, Quint, 2020. "The Impact of Trade Liberalization on Firms' Product and Labor Market Power," IZA Discussion Papers 12951, Institute of Labor Economics (IZA).
    4. 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.
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    6. Alison Booth & Richard Freeman & Xin Meng & Jilu Zhang, 2022. "Trade Unions and the Welfare of Rural-Urban Migrant Workers in China," ILR Review, Cornell University, ILR School, vol. 75(4), pages 974-1000, August.
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    8. Horwitz, Frank M. & Cooke, Fang Lee, 2021. "Labor-management Relations in Emerging Economies and Developing Countries," GLO Discussion Paper Series 969, Global Labor Organization (GLO).
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    Keywords

    Labor unions; China; Wages;
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