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Trends of Labor Union Effect on Wage

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Growth Mechanisms and Sustainable Development of the Chinese Economy

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Abstract

This study analyzes the labor union effect on wage levels and the trends of union effects in China and Japan using household surveys. Our findings show that union worker wages are nearly 5% higher than non-union worker wages after controlling for fixed effects in China. In comparison, union worker wages are over 10% higher than non-union worker wages in Japan. We also analyze the trend of union effects on wages in China and Japan using interaction terms. Our findings suggest that union effects increase more vital for China while weakening for Japan in pooled OLS model. In fixed -effects model, however, the trend of union effects changes totally for both countries. It demonstrates that trends in union effects on wages cannot explain the difference in unionization rate for both countries.

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Author information

Authors and Affiliations

  1. Faculty of Economics, Chuo University, Tokyo, Japan

    Tsukasa Matsuura

  2. Graduate School of Humanities and Sciences, Ochanomizu University, Tokyo, Japan

    Tianyao Jiang

Authors
  1. Tsukasa Matsuura
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  2. Tianyao Jiang
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Correspondence to Tsukasa Matsuura .

Editor information

Editors and Affiliations

  1. Hosei University, Tokyo, Japan

    Xinxin Ma

  2. Faculty of Economics, Chuo University, Tokyo, Japan

    Cheng Tang

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Matsuura, T., Jiang, T. (2022). Trends of Labor Union Effect on Wage. In: Ma, X., Tang, C. (eds) Growth Mechanisms and Sustainable Development of the Chinese Economy. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-19-3858-0_13

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  • DOI: https://doi.org/10.1007/978-981-19-3858-0_13

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  • Publisher Name: Palgrave Macmillan, Singapore

  • Print ISBN: 978-981-19-3857-3

  • Online ISBN: 978-981-19-3858-0

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