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Trade Unions and Union Wage Premiums

In: Labor Market Institutions in China

Author

Listed:
  • Xinxin Ma

    (Hosei University)

Abstract

Trade unionsTrade union are key social institutions that are active within companies worldwide; consequently, how unions affect labor marketsLabor market has attracted global attention. However, empirical evidence regarding public and private sectorPrivate sector differences is scarce. Using national longitudinal survey dataLongitudinal survey data from the ChinaChina Family Panel StudiesFamily Panel Studies (CFPS) for 2010–2020, this study examines and compares union wage premiumsUnion wage premium in China’sChina public and private sectorsPrivate sector. Three key findings emerge. First, positive union wage premiumsUnion wage premium are found nationwide. Second, while positive union wage premiumUnion wage premium exists in both the public and private sectorsPrivate sector, the premium in the private sectorPrivate sector is greater than that in the public sectorPublic sector. Third, in contrast with the findings for advanced capitalist countries, in ChinaChina the probability of joining a union among the disadvantaged workers (e.g., low education, women, minority ethnicities, rural migrants) is lower than that among the advantaged workers (e.g., high education, men, Han, urban workers). These results suggest that implementing policies aimed at expanding union coverageUnion coverage in the private sectorPrivate sector and among the disadvantaged groups may effectively narrow the wage gapWage gap between the two sectors and between low- and high-wage workers.

Suggested Citation

  • Xinxin Ma, 2024. "Trade Unions and Union Wage Premiums," Springer Books, in: Labor Market Institutions in China, chapter 0, pages 15-42, Springer.
    • Handle: RePEc:spr:sprchp:978-981-97-6156-2_2
    DOI: 10.1007/978-981-97-6156-2_2
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