Unionization and Cost of Production: Compensation, Productivity, and Factor-Use Effects
AbstractUnionization affects costs of production through compensation premia, technology shifts, and deviations from the least-cost combination of inputs. The first two are familiar, but the last is not. This article distinguishes the three effects, illustrates the factor-use effect, and suggests that it may resolve several apparent inconsistencies: union-induced cost effects appear larger than those implied by union compensation and productivity differentials; union compensation and productivity differentials suggest a larger effect on labor intensity of output than is observed; and employers complain that union work rules reduce productivity when there is little evidence that this is so. Copyright 1991 by University of Chicago Press.
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Bibliographic InfoArticle provided by University of Chicago Press in its journal Journal of Labor Economics.
Volume (Year): 9 (1991)
Issue (Month): 2 (April)
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Web page: http://www.journals.uchicago.edu/JOLE/
Other versions of this item:
- Randall W. Eberts & Joe A. Stone, 1987. "Unionization and cost of production: compensation, productivity, and factor-use effects," Working Paper 8701, Federal Reserve Bank of Cleveland.
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- Elisabetta Magnani & David Prentice, 2000.
"Unionisation, short-run flexibility and cost efficiency: Evidence from U.S. manufacturing,"
2000.04, School of Economics, La Trobe University.
- 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.
- Randall W. Eberts & Kevin Hollenbeck & Joe A. Stone, .
"Teacher Performance Incentives and Student Outcomes,"
Upjohn Working Papers and Journal Articles
rwekhjs2002, W.E. Upjohn Institute for Employment Research.
- Randall Eberts & Kevin Hollenbeck & Joe Stone, 2002. "Teacher Performance Incentives and Student Outcomes," Journal of Human Resources, University of Wisconsin Press, vol. 37(4), pages 913-927.
- Randall Eberts & Kevin Hollenbeck & Joe Stone, 2000. "Teacher Performance Incentives and Student Outcomes," Upjohn Working Papers and Journal Articles 00-65, W.E. Upjohn Institute for Employment Research.
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