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Open Access Publications from the University of California

Does Customer Auditing Help Chinese Workers?

Abstract

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 suppliers’ blue-collar employees’ wages, probability of belonging to a union, or likelihood of working overtime. However, audited firms are more likely to provide rural migrant workers pensions, business medical insurance, and unemployment insurance. 

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