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Union Effects on Productivity: Evidence from Western U.S. Sawmills

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  • Merwin W. Mitchell
  • Joe A. Stone

Abstract

The authors conjecture that previous studies have tended to overestimate the productivity of union firms relative to nonunion firms due to inadequate controls for output quality and input usage—important omissions if the higher cost of unionized labor leads to less labor-intensive products and techniques. To avoid those problems, this study examines a fairly standardized commodity, lumber, and controls for detailed product attributes and inputs. An analysis of data from a survey administered by the authors shows that unionized sawmills were between 12% and 21% less productive than nonunionized mills in fiscal year 1986. As predicted, when product quality and raw material usage are not included in the analysis, the estimate of union productivity is biased upward.

Suggested Citation

  • Merwin W. Mitchell & Joe A. Stone, 1992. "Union Effects on Productivity: Evidence from Western U.S. Sawmills," ILR Review, Cornell University, ILR School, vol. 46(1), pages 135-145, October.
    • Handle: RePEc:sae:ilrrev:v:46:y:1992:i:1:p:135-145
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    Cited by:

    1. 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, President and Fellows of Harvard College, vol. 127(1), pages 333-378.
    2. Jack Kleinhenz & Russ Smith, 2011. "Regional Competitiveness: Labor-Management Relations, Workplace Practices, and Workforce Quality," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 46(2), pages 111-124, April.
    3. Shingo Takahashi, 2011. "How Multi-Tasking Job Designs Affect Productivity: Evidence from the Australian Coal Mining Industry," ILR Review, Cornell University, ILR School, vol. 64(5), pages 841-862, October.
    4. Bridgman, Benjamin, 2015. "Competition, work rules and productivity," Journal of Economic Dynamics and Control, Elsevier, vol. 52(C), pages 136-149.
    5. Chiles Jr., Ted W. & Clark, Joy, 1999. "Environmental Regulation and the Spatial Distribution of Capital and Resources," The Review of Regional Studies, Southern Regional Science Association, vol. 29(1), pages 51-62, Summer.
    6. Della Torre, Edoardo, 2019. "Collective voice mechanisms, HRM practices and organizational performance in Italian manufacturing firms," European Management Journal, Elsevier, vol. 37(3), pages 398-410.

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