nep-cna 2006-08-19 papers

on China

Issue of 2006‒08‒19
two papers chosen by
Zheng Fang
Fudan University

Entrepreneurship in Brazil, China, and Russia By Simeon Djankov; Yingyi Qian; Gerard Roland; Ekaterina Zhuravskaya
Chinese Unions: Nugatory or Transforming? An Alice Analysis By Jianwei Li; David Metcalf

Entrepreneurship in Brazil, China, and Russia

By:	Simeon Djankov (the World Bank); Yingyi Qian (UC Berkeley and NBER); Gerard Roland (UC Berkeley and CEPR); Ekaterina Zhuravskaya (New Economic School/CEFIR and CEPR)
Abstract:	We study the determinants of the decision to become an entrepreneur in Russia, China, and Brazil, using unique survey data at the individual level. We find that entrepreneurs have many common characteristics relative to non-entrepreneurs in all three countries. They are more likely to have entrepreneurs among their relatives and friends, place a higher value on work, are happier and perceive themselves as more successful. There are also a few important differences. Russian and Chinese entrepreneurs are more mobile geographically and across jobs. In Brazil, on the contrary, entrepreneurs are less mobile across jobs and industries. Brazil entrepreneurs have higher trust than non-entrepreneurs, while in Russia and China this is not the case. Finally, we confirm that perceptions of institutional environment are an important determinant of individual decisions to expand business.
Date:	2006–07
URL:	http://d.repec.org/n?u=RePEc:cfr:cefirw:w0066&r=cna

Chinese Unions: Nugatory or Transforming? An Alice Analysis

By:	Jianwei Li; David Metcalf
Abstract:	China has, apparently, more trade union members than the rest of the world put together. But the unions do not function in the same way as western trade unions. In particular Chinese unions are subservient to the Partystate.The theme of the paper is the gap between rhetoric and reality. Issues analysed include union structure, membership, representation, new laws (e.g. promoting collective contracts), new tripartite institutions and theinteraction between unions and the Party-state. We suggest that Chinese unions inhabit an Alice in Wonderland dream world. In reality although Chinese unions do have many members (though probably not as many as the official 137 million figure) they are virtually impotent when it comes to representing workers. Because theParty-state recognises that such frailty may lead to instability it has passed new laws promoting collective contracts and established new tripartite institutions to mediate and arbitrate disputes. While such laws are welcome they are largely hollow: collective contracts are very different from collective bargaining and the incidence of cases dealt with by the tripartite institutions is tiny. Much supporting evidence is presented drawing on detailed case studies undertaken in Hainan Province (the first and largest special economic zone) in 2004 and 2005. The need for more effective representation is appreciated by some All China Federation of TradeUnions (ACFTU) officials. But reasonable reforms do seem a long way off, so unions in China will continue to echo the White Queen:"The rule is, jam tomorrow and jam yesterday - but never jam today" and, alas, tomorrow never comes.
Keywords:	China, trade unions, Hainan Province, collective contracts, collective disputes, membership
JEL:	J5
Date:	2005–12
URL:	http://d.repec.org/n?u=RePEc:cep:cepdps:dp0708&r=cna

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