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The Productivity Effects of Unionization and Firm Size in British Engineering Firms

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Machin, Stephen J

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Abstract

This paper considers the relationship between union presence and labor productivity in a sample of British engineering firms. Rather than use a single indicator of union presence to determine union effects, several indicators of union presence are combined to form an index of union presence. Average union non-union effects on labor productivity estimated using this measure, or using a dummy variable indicating the presence of closed-shop arrangements, are found to be statistically insignificant. However, there is some variation around this average, and the union impact on value added per employee is found to depend significantly on firm size, the estimated effects being more negative in larger firms. Copyright 1991 by The London School of Economics and Political Science.

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Publisher Info
Article provided by London School of Economics and Political Science in its journal Economica.

Volume (Year): 58 (1991)
Issue (Month): 232 (November)
Pages: 479-90
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Handle: RePEc:bla:econom:v:58:y:1991:i:232:p:479-90

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  1. Kevin Denny, 1997. "Productivity and trade unions in British manufacturing industry 1973--85," Applied Economics, Taylor and Francis Journals, vol. 29(10), pages 1403-1409, October. [Downloadable!] (restricted)
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  2. Salvador Barrios & Sophia Dimelis & Helen Louri & Eric Strobl, 2004. "Efficiency spillovers from foreign direct investment in the EU periphery: A comparative study of Greece, Ireland, and Spain," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 140(4), pages 688-705, December. [Downloadable!] (restricted)
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  3. Addison, John T. & Siebert, W. Stanley, 2002. "Changes in Collective Bargaining in the U.K," IZA Discussion Papers 562, Institute for the Study of Labor (IZA). [Downloadable!]
  4. Addison, John T. & Belfield, Clive R., 2002. "Unions and Establishment Performance: Evidence from the British Workplace Industrial/Employee Relations Surveys," IZA Discussion Papers 455, Institute for the Study of Labor (IZA). [Downloadable!]
  5. Gupta, Bishnupriya, 2006. "Unions, Wages and Labour Productivity : Evidence from Indian Cotton Mills," The Warwick Economics Research Paper Series (TWERPS) 753, University of Warwick, Department of Economics. [Downloadable!]
  6. Jones, Melanie K. & Jones, Richard J. & Latreille, Paul L. & Sloane, Peter J., 2008. "Training, Job Satisfaction and Workplace Performance in Britain: Evidence from WERS 2004," IZA Discussion Papers 3677, Institute for the Study of Labor (IZA). [Downloadable!]
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