Union Effects on Performance and Employment Relations: Evidence from China

26 Pages Posted: 30 Oct 2009

See all articles by Yi Lu

Yi Lu

School of Business, University of Hong Kong

Zhigang Tao

The University of Hong Kong - School of Business

Yijiang Wang

University of Minnesota - Twin Cities - Carlson School of Management

Date Written: August 2009

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.

Keywords: Unions, Labor Productivity, Profitability, Employee Benefits, Transitional Economy, Employment Relations

JEL Classification: J51, P36, D21, L25

Suggested Citation

Lu, Yi and Tao, Zhigang and Wang, Yijiang, Union Effects on Performance and Employment Relations: Evidence from China (August 2009). Available at SSRN: https://ssrn.com/abstract=1495662 or http://dx.doi.org/10.2139/ssrn.1495662

Yi Lu (Contact Author)

School of Business, University of Hong Kong ( email )

Rm 730, Meng Wah Complex
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HOME PAGE: http://www.fbe.hku.hk/~luyi

Zhigang Tao

The University of Hong Kong - School of Business ( email )

Meng Wah Complex
Pokfulam Road
Hong Kong
China
(852) 2857-8223 (Phone)
(852) 2858-5614 (Fax)

Yijiang Wang

University of Minnesota - Twin Cities - Carlson School of Management ( email )

321 19th Avenue South
Industrial Relations Center
Minneapolis, MN 55455
United States
612-624-6814 (Phone)
612-624-8360 (Fax)

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