Explaining compliance: A multi-actor framework for understanding labour law compliance in China

Abstract

I argue that there is increasing evidence that multiple stakeholders, such as labour intermediaries and independent workers, are involved in the regulation of labour standards in China, resulting in increasing compliance with labour laws. In addition, I argue that the differential interests of multiple stakeholders lead to a variation in compliance across different labour law provisions. I find support for these arguments using original factory-level compliance data collected in southern China between 2009 and 2011. There is ‘thick’ compliance when stakeholders’ interests converge, as observed in the case of written contract requirements. There is ‘thin’ compliance when there is less convergence in stakeholder interests, as observed in the case of compliance with social insurance provisions. Finally, there is no compliance when there is convergence toward non-compliance in stakeholder interests, as observed in the case of overtime hour limits.