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Unionisation and Firm Performance in China’s Manufacturing Industries

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  • Sajid Anwar
  • Sizhong Sun

Abstract

Using firm level data, this paper examines the link between unionisation and firm performance in China’s manufacturing industries. The empirical results suggest that unionisation has not greatly benefitted workers in China’s textile industry but it has contributed to much larger increase in average wages in both domestic and foreign invested firms in communication equipment, computer and other electronic equipment manufacturing industry. In the case of the general equipment manufacturing industry, unionised domestic firms pay higher average wages but there is no link between unionisation and average wage in foreign invested firms. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Sajid Anwar & Sizhong Sun, 2015. "Unionisation and Firm Performance in China’s Manufacturing Industries," Journal of Labor Research, Springer, vol. 36(1), pages 78-102, March.
    • Handle: RePEc:spr:jlabre:v:36:y:2015:i:1:p:78-102
    DOI: 10.1007/s12122-014-9197-1
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    References listed on IDEAS

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    Cited by:

    1. Tony Fang & Ying Ge & Youqing Fan, 2019. "Unions and the productivity performance of multinational enterprises: evidence from China," Asian Business & Management, Palgrave Macmillan, vol. 18(4), pages 281-300, September.
    2. 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.
    3. Wenjing Duan & Pedro S. Martins, 2022. "Rent sharing in China: Magnitude, heterogeneity and drivers," British Journal of Industrial Relations, London School of Economics, vol. 60(1), pages 176-219, March.
    4. 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.
    5. Sun, Sizhong & Anwar, Sajid, 2019. "R&D activities and FDI in China’s iron ore mining industry," Economic Analysis and Policy, Elsevier, vol. 62(C), pages 47-56.

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    More about this item

    Keywords

    Unionisation; Economic development; Coarsened exact matching; China; J01; J31; J50;
    All these keywords.

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General

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