Can direct union elections increase workers’ economic wellbeing in China?: testing effects and explaining mechanisms

Le, Junjie and Liu, Qiong and Zhou, Minghai (2019) Can direct union elections increase workers’ economic wellbeing in China?: testing effects and explaining mechanisms. Working Paper. Unpublished. (Unpublished)

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Abstract

Direct union elections, a new institutional arrangement in grassroots trade unions in China, have been introduced experimentally in coastal regions since 2000. Using matched employer–employee data, this study examines the effects of direct union elections on workers’ economic wellbeing. Results reveal that 1) union members with directly elected leaders receive higher wages than those without and 2) direct union elections are positively correlated with worker satisfaction. Additional evidences suggest that effects of direct elections work through stronger union leadership and harmonious industrial relations, resembling the voice-response face of unionism. The effect of direct elections significantly weakens or disappears when we exclude the large firms from the analysis. Meanwhile, the effect of union membership regains its significance. We argue that direct elections are a government-sponsored experiment in which large firms are selected to form an incentive-compatible framework among local governments, firms, and workers for explaining union effects with Chinese characteristics.

Item Type: Monograph (Working Paper)
Additional Information: UNNC School of Economics Working Paper Series: Series G Globalisation and Economic Policy, School Economics Working Paper – GEP Series 2019.5G
Keywords: direct union elections; workers’ economic wellbeing; employer–employee data; firm size; incentive compatible; two faces of unionism
Schools/Departments: University of Nottingham Ningbo China > Faculty of Humanities and Social Sciences > School of Economics
Related URLs:
URLURL Type
https://www.nottingham.edu.cn/en/economics/research/research-centres/gep-china/gep-homepage.aspxUNSPECIFIED
Depositing User: Wu, Cocoa
Date Deposited: 05 Jun 2019 13:02
Last Modified: 10 Jun 2019 12:19
URI: http://eprints.nottingham.ac.uk/id/eprint/56835

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