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Unionization and Productivity: Micro-Econometric Evidence

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  • Kim B. Clark

Abstract

It is widely agreed that unionization affects the rules and procedures governing the employment relation in organized establishments. The effect of these changes on establishment productivity, however, is unclear. This issue is examined using establishment level data from the U. S. cement industry. A positive union effect on the order of 6–8 percent is found in both cross-section and time series data. Although some caution is in order in interpreting the results, the evidence suggests that unionization can lead to productive changes in the operation of the enterprise.

Suggested Citation

  • Kim B. Clark, 1980. "Unionization and Productivity: Micro-Econometric Evidence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 95(4), pages 613-639.
    • Handle: RePEc:oup:qjecon:v:95:y:1980:i:4:p:613-639.
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    Cited by:

    1. Bishnupriya Gupta, 2011. "Wages, unions, and labour productivity: evidence from Indian cotton mills," Economic History Review, Economic History Society, vol. 64(s1), pages 76-98, February.
    2. repec:ilo:ilowps:433276 is not listed on IDEAS
    3. David S. Lee & Alexandre Mas, 2012. "Long-Run Impacts of Unions on Firms: New Evidence from Financial Markets, 1961--1999," The Quarterly Journal of Economics, Oxford University Press, vol. 127(1), pages 333-378.
    4. Alberto Salvo, 2004. "Inferring Conduct under the Threat of Entry: The Case of the Brazilian Cement Industry," STICERD - Economics of Industry Papers 38, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    5. Elisabetta Magnani & David Prentice, 2000. "Unionisation, short-run flexibility and cost efficiency: Evidence from U.S. manufacturing," Working Papers 2000.04, School of Economics, La Trobe University.
    6. Klinedinst, Mark, 1991. "Inside the black box: compensation structures of efficient Yugoslavian firms," MPRA Paper 36305, University Library of Munich, Germany.
    7. Nguyen, Sang V & Streitwieser, Mary L, 1999. "Factor Substitution in U.S. Manufacturing: Does Plant Size Matter?," Small Business Economics, Springer, vol. 12(1), pages 41-57, February.
    8. Jaime Saavedra-Chanduví & Máximo Torero, 2002. "Union Density Changes and Union Effects On Firm Performance in Peru," Research Department Publications 3158, Inter-American Development Bank, Research Department.
    9. Fahn, Matthias, 2011. "Three Essays on Commitment and Information Problems," Munich Dissertations in Economics 13750, University of Munich, Department of Economics.
    10. Shaw, Kathryn, 2009. "Insider econometrics: A roadmap with stops along the way," Labour Economics, Elsevier, vol. 16(6), pages 607-617, December.
    11. Meszaros, John, 2018. "Inequality and unionization within the United States," The Quarterly Review of Economics and Finance, Elsevier, vol. 67(C), pages 326-333.
    12. Sigfrido Lee & Carmen Urizar H., 2003. "The Effects of Unions on Productivity: Evidence from Large Coffee Producers in Guatemala," Research Department Publications 3166, Inter-American Development Bank, Research Department.
    13. Adamson, Dwight W. & Partridge, Mark, 1994. "The Influence of International on Union Firm Hiring and Worker Union Choice," Economics Staff Papers 232237, South Dakota State University, Department of Economics.
    14. Richard B. Freeman, 2005. "What Do Unions Do?-- The 2004 M-Brane Stringtwister Edition," Journal of Labor Research, Transaction Publishers, vol. 26(4), pages 641-668, November.
    15. Gose, Karina & Sadrieh, Abdolkarim, 2014. "Strike, coordination, and dismissal in uniform wage settings," European Economic Review, Elsevier, vol. 70(C), pages 145-158.
    16. Panu Poutvaara & Till Nikolka & Daniel Leithold & Katrin Oesingmann & Daniela Wech, 2017. "Comparative study about the powers and the representativeness of employee representatives in French and German enterprises," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 84, October.
    17. Jans, Ivette & Rosenbaum, David I., 1997. "Multimarket contact and pricing: Evidence from the U.S. cement industry," International Journal of Industrial Organization, Elsevier, vol. 15(3), pages 391-412, May.
    18. Jiang, Xiandeng & Yang, Jin & Yang, Wei & Zhang, Jian, 2021. "Do employees’ voices matter? Unionization and corporate environmental responsibility," International Review of Economics & Finance, Elsevier, vol. 76(C), pages 1265-1281.

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