July 2, 2015 Chinese Companies’ Political Connections Can Be Lethal for EmployeesIn China, the worker death rate in firms whose executives are politically well-connected is 5 times higher than in comparable firms, say Raymond Fisman of Columbia University and Yongxiang Wang of the University of Southern California. Well-connected executives apparently use their clout to circumvent safety oversight. In the past, Chinese officials have blamed corruption for the poor safety record of the coal industry; in 2003, the worker mortality rate per ton of coal extracted in Chinese mines was 30 times higher than in South African mines, the researchers say. |
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