The effects of employee involvement and participation on subjective wellbeing: evidence from Urban China

Based on a unique dataset from the Chinese General Social Survey, this paper provides empirical evidence on the relationship between employee involvement and participation (EIP) and subjective wellbeing in transitional China. The econometric analysis shows that, while controlling for personal characteristics, some EIP elements are significantly associated with employees’ self-perceived satisfaction with work, life, protection of rights and benefits, and the state sector reform. These EIP elements include: participative and consultative management; freedom of expression and effective discussion between employees and their supervisors; and better understanding of, and participation in, workplace reforms. However, some employees who are willing to participate in higher-level decision making might have been unable to find adequate institutional channels to materialise their ambitions. Therefore, potential exists to further develop EIP as a more effective means to improve urban Chinese employees’ wellbeing and their workplace conditions.