DO CHINESE UNIONS HAVE “REAL” EFFECTS ON EMPLOYEE COMPENSATION?

Authors

  • YING GE

    1. Ge: School of International Trade and Economics, University of International Business and Economics, Chaoyang District, Beijing 100029, China. Phone 010-64493368, Fax 010-64796438, E-mail yige60@vip.sina.com;
      geying@uibe.edu.cn
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    • I would like to thank Brad Humphreys and three anonymous referees for their insightful comments and suggestions. Funding from University of International Business and Economics is gratefully acknowledged.


Abstract

In this article, we use enterprise population-level data to investigate the effectiveness of Chinese unions in improving employee wage and nonwage compensation. We show that the effectiveness of Chinese unions stems from a “collective voice” face rather than from a “monopoly” face. The empirical findings on the effectiveness of unions are remarkable: unions in the workplace significantly improve employee wage and nonwage compensation, along with employee training. Moreover, the presence of unions within the same region and industry generates positive spillovers for employee compensation. The unions in China do have “real” effects. (JEL J30, J50, J51, K31)

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