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Union Effects on Productivity, Profits, and Growth: Has the Long Run Arrived?

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  • Addison, John T
  • Hirsch, Barry T

Abstract

This article interprets literature examining union effects on economic performance. Production function studies indicate small overall union impacts on productivity; positive effects, where they exist, appear to result from management response to decreased profit expectations and from a natural selection process. Lower profitabilit y among unionized firms is well established; more interesting is the possibility that unions appropriate quasi-rents deriving from long-lived tangible and intangible capital. The connection between unions, investment behavior, and productivity growth emerges as a particularly fruitful line of empirical inquiry, although it does not encourage a sanguine view of unionism's long-run impact. Copyright 1989 by University of Chicago Press.

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Bibliographic Info

Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 7 (1989)
Issue (Month): 1 (January)
Pages: 72-105

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Handle: RePEc:ucp:jlabec:v:7:y:1989:i:1:p:72-105

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Web page: http://www.journals.uchicago.edu/JOLE/

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