Abstract
AbstractThis 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.KeywordsLabor UnionWageChinaJapan
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