Title: Union Effects on Performance and Employment Relations: Evidence from China
Reference Number: 1193
Publication Date: August 2009
JEL Classifcation: J51, P36, D21, L25

Yi Lu
The University of Hong Kong

Zhigang Tao
The University of Hong Kong

Yijiang Wang
Cheung Kong Graduate School of Business

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.

Published in China Economic Review 21:1, March 2010, pp. 202-210

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

PDF: The paper is no longer available here. Please refer to published source.
Last modified: 09/20/2010