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Labor unions and productivity: An empirical analysis using Japanese firm-level data

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  • Morikawa, Masayuki

Abstract

This paper empirically analyzes the relationship between labor union and firm performance in areas such as productivity and profitability by using data on more than 4000 Japanese firms, ranging from listed large firms to unlisted SMEs, in both the manufacturing and non-manufacturing sector. The presence of labor unions has statistically and economically significant positive effects on firm productivity. Unions' effects on wages are also positive, their magnitude being slightly larger than those on productivity. The decrease in the number of employees is greater at unionized firms than at non-unionized firms. The difference in employment growth is mainly attributable to the change in the number of part-time workers. In order to enhance productivity, close cooperation between management and unions is essential.

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Bibliographic Info

Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 17 (2010)
Issue (Month): 6 (December)
Pages: 1030-1037

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Handle: RePEc:eee:labeco:v:17:y:2010:i:6:p:1030-1037

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Web page: http://www.elsevier.com/locate/labeco

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Keywords: Labor union Productivity Wage Profitability Part-time worker;

References

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Citations

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Cited by:
  1. Uwe Jirjahn & Steffen Mueller, 2011. "Nonunion Worker Representation, Foreign Owners and the Performance of Establishments," Research Papers in Economics 2011-03, University of Trier, Department of Economics.
  2. ANDO Mitsuyo & KIMURA Fukunari, 2012. "International Production Networks and Domestic Operations of Japanese Manufacturing Firms: Normal periods and the Global Financial Crisis," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 12047, Research Institute of Economy, Trade and Industry (RIETI).
  3. Noda, Tomohiko & Hirano, Daisuke, 2013. "Enterprise unions and downsizing in Japan before and after 1997," Journal of the Japanese and International Economies, Elsevier, vol. 28(C), pages 91-118.
  4. G. Cardullo & M. Conti & G. Sulis, 2012. "Sunk Capital, Unions and the Hold-Up Problem: Theory and Evidence from Sectoral Data," Working Paper CRENoS 201226, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  5. YAMAMOTO Isamu & MATSUURA Toshiyuki, 2012. "Effect of Work-Life Balance Practices on Firm Productivity: Evidence from Japanese firm-level panel data," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 12079, Research Institute of Economy, Trade and Industry (RIETI).
  6. MORIKAWA Masayuki, 2014. "Are Large Headquarters Unproductive? Evidence from a panel of Japanese companies," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 14036, Research Institute of Economy, Trade and Industry (RIETI).
  7. Masayuki Morikawa, 2014. "What Types of Company Have Female and Foreign Directors?," CAMA Working Papers 2014-47, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
  8. TANAKA Ayumu, 2011. "Multinationals in the Services and Manufacturing Sectors: A firm-level analysis using Japanese data," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 11059, Research Institute of Economy, Trade and Industry (RIETI).
  9. Morikawa, Masayuki, 2013. "Productivity and survival of family firms in Japan," Journal of Economics and Business, Elsevier, Elsevier, vol. 70(C), pages 111-125.
  10. John Budd & Wei Chi & Yijiang Wang & Qianyun Xie, 2014. "What Do Unions in China Do? Provincial-Level Evidence on Wages, Employment, Productivity, and Economic Output," Journal of Labor Research, Springer, Springer, vol. 35(2), pages 185-204, June.
  11. Masayuki Morikawa, 2014. "What Types of Companies Have Female and Foreign Directors?," AJRC Working Papers, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University 1404, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
  12. Kuroda, Sachiko & Yamamoto, Isamu, 2013. "Firms’ demand for work hours: Evidence from matched firm-worker data in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 29(C), pages 57-73.
  13. Amoroso, S., 2013. "Heterogeneity of innovative, collaborative, and productive firm-level processes," Open Access publications from Tilburg University urn:nbn:nl:ui:12-5663713, Tilburg University.
  14. MORIKAWA Masayuki, 2014. "Innovation in the Service Sector and the Role of Patents and Trade Secrets," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 14030, Research Institute of Economy, Trade and Industry (RIETI).
  15. Fang, Tony & Ge, Ying, 2012. "Unions and firm innovation in China: Synergy or strife?," China Economic Review, Elsevier, vol. 23(1), pages 170-180.
  16. Ayumu Tanaka, 2012. "Firm Productivity and Foreign Direct Investment in the Services Sector: A Firm-Level Analysis using Japanese Data," Discussion papers e-11-008, Graduate School of Economics Project Center, Kyoto University.

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