Raising Grievances to the State: The Political Economic Effects of Anti-Corruption Crackdowns on Labor Activism in China
Journal of Development Economics, Volume 181, 2026 Working Paper Blog Post
This paper studies how government actions shape workers’ expected returns to striking by exploiting China’s anti-corruption campaign as a natural experiment. Using a city-level dataset linking corruption inspections to strikes from 2011 to 2020, I show that strike incidents rise sharply after a city’s first high-profile inspection, driven largely by wage arrears from private firms and concentrated in the construction and manufacturing sectors. Strikes also spread through network channels, with later-treated and neighboring cities responding to inspections elsewhere. Evidence indicates that inspections weakened firm–government ties and shifted government attention, raising workers’ expected returns and revealing pre-existing grievances among workers.