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The effect of unions on firm performance in Japanese manufacturing

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  • Giorgio Brunello

Abstract

Using data on a sample of 979 union and nonunion Japanese manufacturing firms selected from the 1987 issue of the Yearbook of Japanese Unlisted Companies, the author examines the relationship between union status and firm performance in Japan. The findings suggest that Japanese unions in the sample substantially reduced both productivity and profitability, as well as regular wages net of bonuses and fringes. These three union effects were considerably smaller in small and medium-size firms than in large firms, perhaps because many of the small and medium-size firms were subcontractors that were pressed by the firms contracting them to cut costs and increase productivity. (Abstract courtesy JSTOR.)

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Bibliographic Info

Article provided by ILR Review, Cornell University, ILR School in its journal ILR Review.

Volume (Year): 45 (1992)
Issue (Month): 3 (April)
Pages: 471-487

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Handle: RePEc:ilr:articl:v:45:y:1992:i:3:p:471-487

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Cited by:
  1. Eguchi, Kyota, 2002. "Unions as commitment devices," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 47(4), pages 407-421, April.
  2. Dobbelaere, Sabien, 2005. "Joint Estimation of Price-Cost Margins and Union Bargaining Power for Belgian Manufacturing," IZA Discussion Papers 1466, Institute for the Study of Labor (IZA).
  3. Morikawa, Masayuki, 2010. "Labor unions and productivity: An empirical analysis using Japanese firm-level data," Labour Economics, Elsevier, Elsevier, vol. 17(6), pages 1030-1037, December.
  4. David Metcalf, 2002. "Unions and Productivity, Financial Performance and Investment: International Evidence," CEP Discussion Papers dp0539, Centre for Economic Performance, LSE.
  5. Kyota Eguchi, 2000. "Employment Protection Regulations and New Hiring," CIRJE F-Series, CIRJE, Faculty of Economics, University of Tokyo CIRJE-F-88, CIRJE, Faculty of Economics, University of Tokyo.
  6. Tsuru, Tsuyoshi, 2009. "The Union Wage Premium, Voice, and Nonunion Workers' Attitudes: Before and After Japan's Lost Decade," Discussion Paper Series, Institute of Economic Research, Hitotsubashi University a516, Institute of Economic Research, Hitotsubashi University.
  7. Chris Doucouliagos & Patrice Laroche, 2007. "Unions and Profitability: A Meta-Analysis," Economics Series 2007_01, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
  8. David Metcalf, 2002. "Unions and productivity, financial performance and investment: international evidence," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 20072, London School of Economics and Political Science, LSE Library.
  9. MORIKAWA Masayuki, 2008. "What Do Japanese Unions Do for Productivity?: An Empirical Analysis Using Firm-Level Data," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 08027, Research Institute of Economy, Trade and Industry (RIETI).

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