Does Customer Auditing Help Chinese Workers?
The authors find that auditing by downstream firms has limited effects on Chinese firms' adherence to labor standards and other measures of blue-collar workers' well-being. Auditing does not affect the supplier's blue-collar employees' wages, probability of belonging to a union, or likelihood of working overtime. Audited firms, however, are more likely to provide rural migrant workers (who usually face discrimination) with government-sponsored medical insurance, business medical insurance, and unemployment insurance.
As of August 31, 2014, the ILR Review is published by SAGE. Please visit the journal site to read this article.