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

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Author Info
Addison, John T
Hirsch, Barry T

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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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Publisher 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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  1. David Metcalf, 2002. "Unions and Productivity, Financial Performance and Investment: International Evidence," CEP Discussion Papers dp0539, Centre for Economic Performance, LSE. [Downloadable!]
  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). [Downloadable!]
    Other versions:
  3. MORIKAWA Masayuki, 2008. "What Do Japanese Unions Do for Productivity?: An Empirical Analysis Using Firm-Level Data," Discussion papers 08027, Research Institute of Economy, Trade and Industry (RIETI). [Downloadable!]
  4. Alex Bryson & John Forth & Patrice Laroche, 2009. "Unions and Workplace Performance in Britain and France," CEP Discussion Papers dp0920, Centre for Economic Performance, LSE. [Downloadable!]
  5. Hibbs Jr., Douglas A. & Locking, Håkan, 2000. "Wage Dispersion and Productive Efficiency: Evidence For Sweden," Working Papers in Economics 21, Göteborg University, Department of Economics. [Downloadable!]
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  6. Steven G. Allen, 1988. "Human Resource Policies and Union-Nonunion Productivity Differences," NBER Working Papers 2744, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. Orazem, Peter & Bouillon, Marvin & Doran, B. Michael, 2004. "Long-Term Attachments and Long-Run Firm Rates of Return," Staff General Research Papers 11577, Iowa State University, Department of Economics.
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  8. Bruce C. Fallick & Kevin A. Hassett, 1996. "Investment and union certification," Finance and Economics Discussion Series 96-43, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
    Other versions:
  9. John T. Addison, 2005. "The Determinants of Firm Performance: Unions, Works Councils, and Employee Involvement/High Performance Work Practices," GEMF Working Papers 2005-03, GEMF - Faculdade de Economia, Universidade de Coimbra. [Downloadable!]
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  10. Justus Haucap & Christian Wey, 2002. "Unionization Structures and Firms' Incentives for Productivity Enhancing Investments," CIG Working Papers FS IV 02-10, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG). [Downloadable!]
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  11. Barry T. Hirsch, 2007. "Sluggish Institutions in a Dynamic World: Can Unions and Industrial Competition Coexist?," IZA Discussion Papers 2930, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  12. David G. Blanchflower & Neil Millward & Andrew J. Oswald, 1989. "Unionization and Employment Behavior," NBER Working Papers 3180, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  13. Lars Calmfors & Giancarlo Corsetti & Seppo Honkapohja & John Kay & Willi Leibfritz & Gilles Saint-Paul & Hans-Werner Sinn & Xavier Vives, 2004. "Pay-setting Systems in Europe: On-going Development and Possible Reforms," EEAG Report on the European Economy, CESifo Group Munich, vol. 0, pages 61-83, October. [Downloadable!]
  14. Barry T. Hirsch & Edward J. Schumacher, 2000. "Private Sector Union Density and the Wage Premium: Past, Present, and Future," Working Papers 0015, East Carolina University, Department of Economics. [Downloadable!]
    Other versions:
  15. Haucap, Justus & Wey, Christian, 2003. "Unionization Structures and Innovation Incentives," CEPR Discussion Papers 4079, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  16. Hibbs Jr., Douglas A., 2000. "Bread and Peace Voting in U.S. Presidential Elections," Working Papers in Economics 20, Göteborg University, Department of Economics. [Downloadable!]
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  17. Hirsch, Barry T., 2003. "What Do Unions Do for Economic Performance?," IZA Discussion Papers 892, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  18. Richard B. Freeman, 2000. "Single Peaked Vs. Diversified Capitalism: The Relation Between Economic Institutions and Outcomes," NBER Working Papers 7556, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  19. Jaime Saavedra-Chanduví & Máximo Torero, 2002. "Union Density Changes and Union Effects On Firm Performance in Peru," RES Working Papers 3158, Inter-American Development Bank, Research Department. [Downloadable!]
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