Union effects on performance and employment relations: Evidence from China |
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Authors: | Yi Lu Zhigang Tao Yijiang Wang |
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Affiliation: | 1. School of Economics and Finance, University of Hong Kong, Hong Kong;2. School of Business, University of Hong Kong, Hong Kong;3. Cheung Kong Graduate School of Business, China |
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Abstract: | This paper empirically studies union effects on the performance of, and employment relations in, China's private enterprises. The study finds a positive and statistically significant union effect on labor productivity, but not on profitability. It further finds that unions lead to better employee benefits and increased contract signing in employment. These findings suggest that, in the era of transition from a centrally planned to a market economy, unions in China's private enterprises do promote workers' interests as unions do in other economies. And they do that without abandoning their traditional role of harmonizing employment relations, as required by the Party. |
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