Union pay premium in China: an individual-level analysis
Purpose – The purpose of this paper is to estimate the union-nonunion pay gap impact separately for wages and bonuses as well as total compensation to include both wages and bonuses in China. The way in which the impact varies as control variables are added is illustrated as is how the impact varies...
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| Veröffentlicht in: | International journal of manpower 2016-07, Vol.37 (4), p.606-627 |
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| creator | Gunderson, Morley Lee, Byron Y Wang, Hui |
| description | Purpose
– The purpose of this paper is to estimate the union-nonunion pay gap impact separately for wages and bonuses as well as total compensation to include both wages and bonuses in China. The way in which the impact varies as control variables are added is illustrated as is how the impact varies by the type of firm ownership. The overall pay gap is also decomposed into a component due to differences in their pay determining characteristics as well as a component due to differences in their returns to those characteristics. These separate components are also calculated throughout the pay distribution.
Design/methodology/approach
– Using the 2010 China Family Panel Studies Survey, a nationally representative survey in China, the methodology involves different estimation procedures as appropriate for the nature of the data and the dependent variables. First the authors estimate a single equation to determine the union-nonunion pay gap. Then the authors estimate the union impact on the various components of compensation (wages and bonuses). Next the authors decompose the relative contribution of each factor in explaining the wage gap. Finally, quantile regressions are used to examine the union impact across various levels of the pay distribution.
Findings
– The authors find a gross union-nonunion pay gap (wages + bonuses) of 42 percent, dropping to 12 percent after controlling for the effect of other pay determining factors. The union impact on wages is only 8 percent, but bonuses are about twice as high for union workers. The union impact is essentially zero for (state-owned firms) SOEs and for foreign-owned firms but it is large at 16 percent for private firms and even larger at 22 percent for government agencies. Of the overall pay gap of 42 percent, about three-quarters is attributable to differences in their endowments of pay determining characteristics and about one-quarter to differences in the returns for the same endowments of characteristics. Quantile regressions reveal that the pure or adjusted union wage premium exhibits a u-shaped pattern being highest in the bottom and to a lesser extent the top of the pay distribution.
Originality/value
– There are a dearth of studies examining the union-nonunion pay gap in China. Of the studies that examine this issue, all of them are at the enterprise level with no studies at the individual level. Taking a nationally representative dataset at the individual level, the authors are able to estimate the union |
| doi_str_mv | 10.1108/IJM-08-2014-0174 |
| format | Article |
| fullrecord | <record><control><sourceid>proquest_emera</sourceid><recordid>TN_cdi_proquest_journals_2112700572</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><sourcerecordid>2112700572</sourcerecordid><originalsourceid>FETCH-LOGICAL-c375t-e695de503ffd0879defee745697bdec72fddc8639b28262c002c1ffe7bc665683</originalsourceid><addsrcrecordid>eNptkEtLAzEUhYMoWKt7lwOuY28yzWPcSfFRqbix65BObjBlXiadQv-9KXUjuDqcwzmXy0fILYN7xkDPlm_vFDTlwOYUmJqfkQlTQlMplDonkxyXVCkOl-QqpS0AVIyxCdHrLvRdMdhDMURsw9gWoSsWX6GzD4XtsnFhH9xoG9rgHpuc2eaQQromF942CW9-dUrWz0-fi1e6-nhZLh5XtC6V2FGUlXAooPTegVaVQ4-o5kJWauOwVtw7V2tZVhuuueQ1AK-Z96g2tZRC6nJK7k53h9h_j5h2ZtuPMT-RDGeMKwCheG7BqVXHPqWI3gwxtDYeDANz5GMyH5PlyMcc-eTJ7DTBFqNt3H-LP0TLH-PBZYk</addsrcrecordid><sourcetype>Aggregation Database</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype><pqid>2112700572</pqid></control><display><type>article</type><title>Union pay premium in China: an individual-level analysis</title><source>Emerald Journals</source><creator>Gunderson, Morley ; Lee, Byron Y ; Wang, Hui</creator><creatorcontrib>Gunderson, Morley ; Lee, Byron Y ; Wang, Hui</creatorcontrib><description>Purpose
– The purpose of this paper is to estimate the union-nonunion pay gap impact separately for wages and bonuses as well as total compensation to include both wages and bonuses in China. The way in which the impact varies as control variables are added is illustrated as is how the impact varies by the type of firm ownership. The overall pay gap is also decomposed into a component due to differences in their pay determining characteristics as well as a component due to differences in their returns to those characteristics. These separate components are also calculated throughout the pay distribution.
Design/methodology/approach
– Using the 2010 China Family Panel Studies Survey, a nationally representative survey in China, the methodology involves different estimation procedures as appropriate for the nature of the data and the dependent variables. First the authors estimate a single equation to determine the union-nonunion pay gap. Then the authors estimate the union impact on the various components of compensation (wages and bonuses). Next the authors decompose the relative contribution of each factor in explaining the wage gap. Finally, quantile regressions are used to examine the union impact across various levels of the pay distribution.
Findings
– The authors find a gross union-nonunion pay gap (wages + bonuses) of 42 percent, dropping to 12 percent after controlling for the effect of other pay determining factors. The union impact on wages is only 8 percent, but bonuses are about twice as high for union workers. The union impact is essentially zero for (state-owned firms) SOEs and for foreign-owned firms but it is large at 16 percent for private firms and even larger at 22 percent for government agencies. Of the overall pay gap of 42 percent, about three-quarters is attributable to differences in their endowments of pay determining characteristics and about one-quarter to differences in the returns for the same endowments of characteristics. Quantile regressions reveal that the pure or adjusted union wage premium exhibits a u-shaped pattern being highest in the bottom and to a lesser extent the top of the pay distribution.
Originality/value
– There are a dearth of studies examining the union-nonunion pay gap in China. Of the studies that examine this issue, all of them are at the enterprise level with no studies at the individual level. Taking a nationally representative dataset at the individual level, the authors are able to estimate the union-nonunion pay gap in China. The authors identify the portion of the gap that reflects differences in endowments of pay determining characteristics and the portion that reflects different returns to those characteristics, and the relative contribution of the different variables to those components; and how these components change over the pay distribution. The authors also offer explanations for many of these patterns.</description><identifier>ISSN: 0143-7720</identifier><identifier>EISSN: 1758-6577</identifier><identifier>DOI: 10.1108/IJM-08-2014-0174</identifier><language>eng</language><publisher>Bradford: Emerald Group Publishing Limited</publisher><subject>Bargaining ; Bonuses ; Compensation ; Economic models ; Economics ; Employees ; Employers ; Employment ; Endowment ; Labor unions ; Labour economics ; Nonunion ; Wages & salaries ; Workers</subject><ispartof>International journal of manpower, 2016-07, Vol.37 (4), p.606-627</ispartof><rights>Emerald Group Publishing Limited</rights><rights>Emerald Group Publishing Limited 2016</rights><lds50>peer_reviewed</lds50><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c375t-e695de503ffd0879defee745697bdec72fddc8639b28262c002c1ffe7bc665683</citedby><cites>FETCH-LOGICAL-c375t-e695de503ffd0879defee745697bdec72fddc8639b28262c002c1ffe7bc665683</cites></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktopdf>$$Uhttps://www.emerald.com/insight/content/doi/10.1108/IJM-08-2014-0174/full/pdf$$EPDF$$P50$$Gemerald$$H</linktopdf><linktohtml>$$Uhttps://www.emerald.com/insight/content/doi/10.1108/IJM-08-2014-0174/full/html$$EHTML$$P50$$Gemerald$$H</linktohtml><link.rule.ids>314,778,782,964,11618,27907,27908,52669,52672</link.rule.ids></links><search><creatorcontrib>Gunderson, Morley</creatorcontrib><creatorcontrib>Lee, Byron Y</creatorcontrib><creatorcontrib>Wang, Hui</creatorcontrib><title>Union pay premium in China: an individual-level analysis</title><title>International journal of manpower</title><description>Purpose
– The purpose of this paper is to estimate the union-nonunion pay gap impact separately for wages and bonuses as well as total compensation to include both wages and bonuses in China. The way in which the impact varies as control variables are added is illustrated as is how the impact varies by the type of firm ownership. The overall pay gap is also decomposed into a component due to differences in their pay determining characteristics as well as a component due to differences in their returns to those characteristics. These separate components are also calculated throughout the pay distribution.
Design/methodology/approach
– Using the 2010 China Family Panel Studies Survey, a nationally representative survey in China, the methodology involves different estimation procedures as appropriate for the nature of the data and the dependent variables. First the authors estimate a single equation to determine the union-nonunion pay gap. Then the authors estimate the union impact on the various components of compensation (wages and bonuses). Next the authors decompose the relative contribution of each factor in explaining the wage gap. Finally, quantile regressions are used to examine the union impact across various levels of the pay distribution.
Findings
– The authors find a gross union-nonunion pay gap (wages + bonuses) of 42 percent, dropping to 12 percent after controlling for the effect of other pay determining factors. The union impact on wages is only 8 percent, but bonuses are about twice as high for union workers. The union impact is essentially zero for (state-owned firms) SOEs and for foreign-owned firms but it is large at 16 percent for private firms and even larger at 22 percent for government agencies. Of the overall pay gap of 42 percent, about three-quarters is attributable to differences in their endowments of pay determining characteristics and about one-quarter to differences in the returns for the same endowments of characteristics. Quantile regressions reveal that the pure or adjusted union wage premium exhibits a u-shaped pattern being highest in the bottom and to a lesser extent the top of the pay distribution.
Originality/value
– There are a dearth of studies examining the union-nonunion pay gap in China. Of the studies that examine this issue, all of them are at the enterprise level with no studies at the individual level. Taking a nationally representative dataset at the individual level, the authors are able to estimate the union-nonunion pay gap in China. The authors identify the portion of the gap that reflects differences in endowments of pay determining characteristics and the portion that reflects different returns to those characteristics, and the relative contribution of the different variables to those components; and how these components change over the pay distribution. The authors also offer explanations for many of these patterns.</description><subject>Bargaining</subject><subject>Bonuses</subject><subject>Compensation</subject><subject>Economic models</subject><subject>Economics</subject><subject>Employees</subject><subject>Employers</subject><subject>Employment</subject><subject>Endowment</subject><subject>Labor unions</subject><subject>Labour economics</subject><subject>Nonunion</subject><subject>Wages & salaries</subject><subject>Workers</subject><issn>0143-7720</issn><issn>1758-6577</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2016</creationdate><recordtype>article</recordtype><sourceid>AFKRA</sourceid><sourceid>BENPR</sourceid><sourceid>CCPQU</sourceid><sourceid>DWQXO</sourceid><recordid>eNptkEtLAzEUhYMoWKt7lwOuY28yzWPcSfFRqbix65BObjBlXiadQv-9KXUjuDqcwzmXy0fILYN7xkDPlm_vFDTlwOYUmJqfkQlTQlMplDonkxyXVCkOl-QqpS0AVIyxCdHrLvRdMdhDMURsw9gWoSsWX6GzD4XtsnFhH9xoG9rgHpuc2eaQQromF942CW9-dUrWz0-fi1e6-nhZLh5XtC6V2FGUlXAooPTegVaVQ4-o5kJWauOwVtw7V2tZVhuuueQ1AK-Z96g2tZRC6nJK7k53h9h_j5h2ZtuPMT-RDGeMKwCheG7BqVXHPqWI3gwxtDYeDANz5GMyH5PlyMcc-eTJ7DTBFqNt3H-LP0TLH-PBZYk</recordid><startdate>20160704</startdate><enddate>20160704</enddate><creator>Gunderson, Morley</creator><creator>Lee, Byron Y</creator><creator>Wang, Hui</creator><general>Emerald Group Publishing Limited</general><scope>AAYXX</scope><scope>CITATION</scope><scope>0U~</scope><scope>1-H</scope><scope>7WY</scope><scope>7WZ</scope><scope>7XB</scope><scope>8AO</scope><scope>8FI</scope><scope>AFKRA</scope><scope>BENPR</scope><scope>BEZIV</scope><scope>CCPQU</scope><scope>DWQXO</scope><scope>FYUFA</scope><scope>F~G</scope><scope>K6~</scope><scope>L.-</scope><scope>L.0</scope><scope>M0C</scope><scope>M0T</scope><scope>PQBIZ</scope><scope>PQEST</scope><scope>PQQKQ</scope><scope>PQUKI</scope><scope>Q9U</scope></search><sort><creationdate>20160704</creationdate><title>Union pay premium in China: an individual-level analysis</title><author>Gunderson, Morley ; Lee, Byron Y ; Wang, Hui</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c375t-e695de503ffd0879defee745697bdec72fddc8639b28262c002c1ffe7bc665683</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2016</creationdate><topic>Bargaining</topic><topic>Bonuses</topic><topic>Compensation</topic><topic>Economic models</topic><topic>Economics</topic><topic>Employees</topic><topic>Employers</topic><topic>Employment</topic><topic>Endowment</topic><topic>Labor unions</topic><topic>Labour economics</topic><topic>Nonunion</topic><topic>Wages & salaries</topic><topic>Workers</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Gunderson, Morley</creatorcontrib><creatorcontrib>Lee, Byron Y</creatorcontrib><creatorcontrib>Wang, Hui</creatorcontrib><collection>CrossRef</collection><collection>Global News & ABI/Inform Professional</collection><collection>Trade PRO</collection><collection>ABI/INFORM Collection</collection><collection>ABI/INFORM Global (PDF only)</collection><collection>ProQuest Central (purchase pre-March 2016)</collection><collection>ProQuest Pharma Collection</collection><collection>Hospital Premium Collection</collection><collection>ProQuest Central UK/Ireland</collection><collection>ProQuest Central</collection><collection>Business Premium Collection</collection><collection>ProQuest One Community College</collection><collection>ProQuest Central Korea</collection><collection>Health Research Premium Collection</collection><collection>ABI/INFORM Global (Corporate)</collection><collection>ProQuest Business Collection</collection><collection>ABI/INFORM Professional Advanced</collection><collection>ABI/INFORM Professional Standard</collection><collection>ABI/INFORM Global</collection><collection>Healthcare Administration Database</collection><collection>ProQuest One Business</collection><collection>ProQuest One Academic Eastern Edition (DO NOT USE)</collection><collection>ProQuest One Academic</collection><collection>ProQuest One Academic UKI Edition</collection><collection>ProQuest Central Basic</collection><jtitle>International journal of manpower</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Gunderson, Morley</au><au>Lee, Byron Y</au><au>Wang, Hui</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Union pay premium in China: an individual-level analysis</atitle><jtitle>International journal of manpower</jtitle><date>2016-07-04</date><risdate>2016</risdate><volume>37</volume><issue>4</issue><spage>606</spage><epage>627</epage><pages>606-627</pages><issn>0143-7720</issn><eissn>1758-6577</eissn><abstract>Purpose
– The purpose of this paper is to estimate the union-nonunion pay gap impact separately for wages and bonuses as well as total compensation to include both wages and bonuses in China. The way in which the impact varies as control variables are added is illustrated as is how the impact varies by the type of firm ownership. The overall pay gap is also decomposed into a component due to differences in their pay determining characteristics as well as a component due to differences in their returns to those characteristics. These separate components are also calculated throughout the pay distribution.
Design/methodology/approach
– Using the 2010 China Family Panel Studies Survey, a nationally representative survey in China, the methodology involves different estimation procedures as appropriate for the nature of the data and the dependent variables. First the authors estimate a single equation to determine the union-nonunion pay gap. Then the authors estimate the union impact on the various components of compensation (wages and bonuses). Next the authors decompose the relative contribution of each factor in explaining the wage gap. Finally, quantile regressions are used to examine the union impact across various levels of the pay distribution.
Findings
– The authors find a gross union-nonunion pay gap (wages + bonuses) of 42 percent, dropping to 12 percent after controlling for the effect of other pay determining factors. The union impact on wages is only 8 percent, but bonuses are about twice as high for union workers. The union impact is essentially zero for (state-owned firms) SOEs and for foreign-owned firms but it is large at 16 percent for private firms and even larger at 22 percent for government agencies. Of the overall pay gap of 42 percent, about three-quarters is attributable to differences in their endowments of pay determining characteristics and about one-quarter to differences in the returns for the same endowments of characteristics. Quantile regressions reveal that the pure or adjusted union wage premium exhibits a u-shaped pattern being highest in the bottom and to a lesser extent the top of the pay distribution.
Originality/value
– There are a dearth of studies examining the union-nonunion pay gap in China. Of the studies that examine this issue, all of them are at the enterprise level with no studies at the individual level. Taking a nationally representative dataset at the individual level, the authors are able to estimate the union-nonunion pay gap in China. The authors identify the portion of the gap that reflects differences in endowments of pay determining characteristics and the portion that reflects different returns to those characteristics, and the relative contribution of the different variables to those components; and how these components change over the pay distribution. The authors also offer explanations for many of these patterns.</abstract><cop>Bradford</cop><pub>Emerald Group Publishing Limited</pub><doi>10.1108/IJM-08-2014-0174</doi><tpages>22</tpages></addata></record> |
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| identifier | ISSN: 0143-7720 |
| ispartof | International journal of manpower, 2016-07, Vol.37 (4), p.606-627 |
| issn | 0143-7720 1758-6577 |
| language | eng |
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| source | Emerald Journals |
| subjects | Bargaining Bonuses Compensation Economic models Economics Employees Employers Employment Endowment Labor unions Labour economics Nonunion Wages & salaries Workers |
| title | Union pay premium in China: an individual-level analysis |
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