The importance of legal strength for trade unions: Theory and evidence from China

Abstract

AbstractThis paper studies how legal strength—the effectiveness of a legal system in governing the use of laws—influences trade unions in China. By focusing on the institutional environment in which laws are practiced, I theorize that a strong legal system can empower trade unions through direct legal mobilization and legal consciousness. Empirical analysis with data collected from multiple sources supports this prediction. I find that unionization is more prevalent in strong legal systems than in weak ones. Moreover, Chinese unions improve labor outcomes to a greater extent when one or more dimensions of the legal systems are strong.