Research On The Wage Effect Of Collective Wage Consultation In Private Enterprises

Existing research on the effect of collective wage consultation of enterprises has the problem of using only one indicator or fragmentary econometric analysis,which has affected the researchers' judgement whether the current stage of collective wage consultation in China is “ achieved ” or “ poor ”.In the study of the wage effect of collective wage consultation in private enterprises,this article first considers collective wage consultation in a group of enterprises which includes private enterprises,state-owned enterprises and foreign-invested enterprises.Second,a structural analysis is made on the wage effect of collective wage consultation in private enterprises.Finally,after empirically finding the wage effect of collective wage consultation in private enterprises,the non-wage effect is further analyzed to comprehensively judge the effect of collective wage consultation in private enterprises.This article discusses the wage effect from the overall perspective and the difference between the ownership.From the overall perspective,this paper puts forward the proposition that “collective wage consultation in our country may have a negative wage effect ”.This proposition not only contrasts with the empirical results of Western countries,but also with our usual intuition.By examining the characteristics of collective wage consultation in China,the article builds a collective consultation model for wages with Chinese characteristics.In order to enhance the robustness and reliability of the empirical results,this paper compares the negative effects of wages in different ownership enterprises and their significant changes before and after the government 's universal implementation.Therefore,this article innovatively proposes that this negative wage effect is due to the upward stickiness of negotiated wages caused by China's unique collective wage consultation system.This can be regarded as a reference patch for labor wage theory.As to the ownership differences,this paper focuses on comparing the wage effects of collective consultation in private enterprises,foreign-funded enterprises,and state-owned enterprises.In terms of empirical research,according to the self-selection problems by using OLS,this paper uses the Propensity score matching method(PSM)to deal with the sample balance problem which could reduce the selectivity deviation.The empirical results show that,unlike foreign-funded enterprises and state-owned enterprises,the wage effect of collective consultation for private enterprises is generally not significant.For frontline employees,collective wage consultation has a positive effect on low-ranking employees.Among non-frontline employees,the negative wage effect is more pronounced in employees with high income quantiles.The employees are returned by age,education,whether they have a technical grade certificate,rural or non-agricultural hukou,local or foreign hukou registration.It is concluded that the collective bargaining of wages in private enterprises has a negative impact on non-agricultural hukou employees,while it has a positive promotion effect on employees with low education levels.The existence of insignificant wage effect in private enterprises does not necessarily mean that the collective wage consultation of private enterprises is “ poor ”or “ formal ”.This article also judges the non-wage effects of collective wage consultation more objectively with the measurement improvement in private enterprise,like the impact on social security benefits and satisfaction,on enterprise employment and on labor productivity.The comprehensive research in this article shows that although the wage effect is not significant,it has a positive overall effect on labor relations in private enterprises when taking into account the employee's social security benefits,employee turnover probability,employee satisfaction and other factors as well as taking into account that it is the first step for both employers and employees to move towards institutionalized dialogue.Moreover,the institutionalization and standardization of collective wage consultation will encourage employees to form benign wage growth expectations,and further promote the establishment of a stable relationship between the enterprise and employees.So increasing the establishment rate and expanding the coverage of the collective wage consultation would improve the harmony of labor relations.In addition,a good environment for creating harmonious labor relations also helps to enhance the degree of harmonious labor relations.The further improvement of collective wage consultation in private enterprises can be started from the following aspects: First,strengthen the subject of collective labor relations and induce the internal demand of related parties.Facilitate the cooperative game or balanced cooperation between the employers and employees to improve the quality and performance of collective consultation.The second is to promote the development of private enterprises,guide enterprises and employees to build and share harmoniously.Confsidering the “ relatively weak capital and absolutely weak labor ” characteristics of private enterprises,it is certainly to maintain“ double maintenance of property rights ”(labor property and capital property).At the same time,effective measures could be taken to reduce the high financing costs and heavy taxation and social security contributions,allowing enterprises to lightly go into battle and concentrate on the development of private enterprises.The survey found that the larger the scale of the enterprise,the better the economic benefits,and the more room for employees to benefit.The third is to optimize the external environment that promotes collective wage consultation.The government should improve the unified public services in urban and rural areas,promote the civicization of migrant workers,and improve the “ same-city treatment ” of public services for migrant workers.