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Purpose: The authors investigate the extent to which differences in provincial union legislation have impacts on the union earnings premium. Design/methodology/approach: Content analysis of provincial union regulations of 25 provinces is conducted to create two indices: one reflecting the degree of stringency of the local requirement that unions be established in a timely fashion and the other reflecting requirements for employers to negotiate wages with the union. The authors use individual level data from the China Family Panel Studies (CFPS) of 2010 to estimate the union earnings premium. Findings: The authors find that unionised workers in China receive an earnings premium ranging from 6.4 to 9.6%, which is in range of other studies (but not all) for China that tend to find a (perhaps surprising) union wage premium in spite of the fact that unions tend to be "company unions" designed to foster stability and growth and to serve as a transmission belt for the wishes of the Party rather than bargaining for the benefit of their members. The authors also find that provincial requirements to establish unions in a timely fashion enhance the impact of unions on the earnings of their members, but provincial requirements to negotiate wages dampen the effect of unions on the earnings of their members. Reasons for these results are discussed. Originality/value: Despite this lack of independence of the Chinese unions, research continuously finds that Chinese unions have effects that are surprisingly similar to those of unions in Western countries. This paper drills deeper into the underlying mechanisms to see if local union strategies, exemplified by provincial union legislation, can explain the unexpected union effects on compensation. To the authors' knowledge, this is the first paper to do so. Moreover, the authors use individual-level data in contrast to most studies on China that use firm or provincial level aggregate data. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to estimate the causal effect of minimum wages (MWs) on the wages, employment and hours of migrant workers in China, and to show their inter-relatedness and how employers can offset some of the costs through subtle adjustments. This paper also illustrates the importance of disaggregating by region and sex. Design/methodology/approach: Causal estimates are provided through difference-in-differences (DID) analysis, and robustness checks through propensity score matching. The analysis is based on micro data at the individual level from the household survey on migrant workers by the National Population and Family Planning Commission, combined with macro data regarding municipalities' population, GDP and employment information based on the China Economic Information Network database. Findings: MW increases for those paid by the month increased the earnings of both low-wage males and females. However, males tend not to experience an adverse employment effect because part of the cost increase is offset by employers increasing their monthly hours of work. Hours of work do not increase for females, so they experience an adverse employment effect. This highlights the importance of examining cost offsets such as increases in hours of work, as well as analyzing effects separately for males and females. Research limitations/implications: The reason behind why employers offset some of the cost increase for males paid by the month by increasing their hours of work, but this cost-offsetting adjustment does not occur for females is uncertain. Social implications: For workers paid by the month, employers can offset some of the cost increase by increasing their hours of work, leading to no reductions in employment. But this adjustment occurs only for males. Hours are not increased for females, but they experience reductions in employment. Clearly, MW increases have adverse effects either in the form of employment reductions (for females) or increases in hours of work for the same monthly pay (for males). Originality/value: This paper provides causal estimates through DID analysis and robustness checks through Propensity Score Matching, and also indicates how employers can offset the cost of MW increases by increasing hours for those paid by the month, resulting in no adverse employment effect for such workers, but an adverse employment effect when such an adjustment does not occur. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to examine the post-enactment status of China's Labour Contract Law and Labour Dispute Mediation and Arbitration Law, focusing on the dramatic rise in remuneration litigation amidst much criticism of weak or ineffective implementation of these laws. Design/methodology/approach: This paper deploys both quantitative and qualitative analysis methods to investigate the features of remuneration litigation. Remuneration judgments by Beijing People's Courts from 1 January 2014 to 31 December 2017 provide the primary empirical data. The intrinsic features of remuneration disputes are investigated to delineate subcategories of claims. Several judges were also interviewed to further explore the nature of remuneration disputes. Findings: Four types of remuneration claims were identified: regular wage, minimum wage, overtime and others (including subsidies and welfare). Examination of these four types, especially how they are processed until concluded by court adjudication, provides a fuller picture of the post-enactment status of these laws and yields objective and rational findings. To explain the continuing steady rise in the volume of remuneration claims, as more workers have knowledge of their rights and access to the courts, this study identifies an increase in the number of factually complicated cases (e.g. overtime claims) and abmiguity in the relevant law, leaving some remuneration disputes difficult, if not impossible, to adjudicate. Conversely, the study also finds significant positive trends following these laws' enactment, particularly a reduction in straightforward cases, such as disputes concerning non-payment of wages/minimum wages, on which the law is clear. It is evidently imperative to improve the clarity of the current laws through further legislation, as the most appropriate next step in China's juridification process of developing its own rule of Labour Law. Research limitations/implications: This study is purposely limited to examining remuneration litigation in Beijing's courts from 2014 to 2017, which is representative of the national trend of dramatically rising remuneration disputes, and thus provides valuable insights. Future studies should cover a wider geographic territory and other categories of labour disputes to provide an even more comprehensive picture of the challenges and potential solutions. Practical implications: By understanding the driving factors of rising labour remuneration disputes, the legislature, workers and employers can act accordingly to curb labour conflicts. The growing complexity and technicality of remuneration litigation indicates that the pressing need of labour juridification is to deploy a subtle, comprehensive method to improve legal clarity and judicial professionalism. Originality/value: This study uniquely divides the types of remuneration litigation in Beijing, adopting methods and yielding findings absent from the prior literature. Both the progress and challenges in China's rule of Labour Law process are reflected in this work, together with public policy and theoretical implications for further study. [ABSTRACT FROM AUTHOR]

Purpose The purpose of this paper is to estimate the causal effect of minimum wages on the employment of low-skilled workers in less developed regions of China.Design/methodology/approach Based on data from the China Health and Nutrition Survey, a double-difference (DD) methodology is used to compare the employment of low-skilled individuals before and after a minimum wage increase in their provinces with a comparison group of individuals in provinces that did not have a minimum wage increase. Also, a triple-difference methodology (DDD) is used that also includes an additional control group of highly educated workers as a within-province internal comparison group that should not be affected by a minimum wage increase.Findings No evidence of an adverse employment effect is found in any of the 36 different estimates, consistent with recent US evidence that uses a similar DD methodology.Research limitations/implications The data are not national representative; rather heavily weighted towards the less developed Central, Western and parts of the Eastern Regions of China. This may partially explain the absence of the theoretically expected adverse employment effect. Other related reasons are discussed, including: lack of enforcement in those less developed regions; a large presence of state-owned enterprises in the regions where employment security clause remains intact; the relatively less developed labour markets in the regions including where employers may behave in a monopsony fashion in their labour markets; shock effects; and cost offsets from reduced fringe benefits and increases in the pace of work. This paper was unable to disentangle the separate effect of these possible factors.Originality/value This is one of the few studies on minimum wages in China to focus on low-skilled workers in less developed regions, to use individuals as the unit of observation rather than aggregates, and to provide causal estimates based on DD and DDD methodologies. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to estimate the impact of minimum wages on employment and wages in China. Design/methodology/approach – The paper uses the difference-in-difference methodology to estimate the employment and wage impacts of the minimum wage increase in 2003 – a year when substantial minimum wage increases occurred in some provinces (treatment provinces) but not in others (comparison provinces). The analysis is restricted to the eastern region so as to make comparisons across relatively homogeneous and contiguous provinces with large numbers of women and rural migrant workers in urban areas – the target groups for minimum wages. Findings – The study finds that overall, minimum wages in China do have an adverse employment effect but the effect is statistically insignificant and quantitatively inconsequential. The adverse employment effects are generally larger in the more market-driven sectors, in the low-wage sector of retail and wholesale trade and restaurants, and for women; however even these effects are extremely small. Minimum wages also had no impact on aggregate wages. These estimates appear consistent with many of those based on this methodology which tends to find no substantial adverse employment effect from minimum wages. Practical implications – Good news: minimum wages do not seem to have any substantial adverse employment effect in China. Bad news: this could simply reflect the fact that they are not enforced. Originality/value – This is one of the few studies of effect of minimum wages in China in English, and using a difference-in-difference methodology as first employed by Card. [ABSTRACT FROM AUTHOR]