Volume 43, Issue 2 pp. 319-342
ORIGINAL ARTICLE

Unions and workplace safety investment in Chinese private enterprises

Yinxiao Chu

Yinxiao Chu

School of Economics, Huazhong University of Science and Technology, Wuhan, Hubei, China

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Xiaoyu Huang

Corresponding Author

Xiaoyu Huang

China School of Banking and Finance, University of International Business and Economics, Beijing, China

Correspondence

Xiaoyu Huang, China School of Banking and Finance, University of International Business and Economics, 10 Huixin East Street, Beijing, 100029, China.

Email: [email protected]

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Jianxing Wei

Jianxing Wei

China School of Banking and Finance, University of International Business and Economics, Beijing, China

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First published: 28 November 2024

[Correction added on 3 December 2024, after online publication: Jianxing Wei affiliation have been updated in this version]

All authors contribute equally to this work.

Abstract

This paper examines the significant role of unions in workplace safety investment. Analyzing data from a national survey of Chinese private enterprises, we find that unionization has a positive effect on workplace safety investment. We test several mechanisms through which unionization may enhance workplace safety investment. Unionization increases investment in workplace safety by advocating for formal contracts between employees and firms. More importantly, unionization enhances workplace safety investment through the democratization of corporate governance structure. Furthermore, the employee representative assembly system, a fundamental mechanism for union participation in democratic management within Chinese firms, is also observed to augment safety investment.

CONFLICT OF INTEREST STATEMENT

The authors declare no conflicts of interest.

DATA AVAILABILITY STATEMENT

The data that support the findings of this study are openly available in Chinese Private Enterprise Survey at https://cpes.zkey.cc/.

The full text of this article hosted at iucr.org is unavailable due to technical difficulties.