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A Tale of Two Countries: Unions, Closures and Growth in Britain and Norway

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Author Info
Alex Bryson
Harald Dale-Olsen

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Abstract

Using linked private sector employer-employee panel data for Britain and Norway weexplore the effects of unionization on workplace closure and employment growth over theperiod 1997-2004. Unions prolonged the life of low-wage workplaces in Britain, whereasNorwegian unions increased (reduced) closure hazards in high (low) waged workplaces.Contrary to earlier studies, unions had no effect on workplace growth in Britain. In Norway,union workplaces experienced 4 percent per annum lower growth. However, the estimation ofa dynamic panel data model for Norway indicates positive long-term causal effects of uniondensity on employment.

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Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0867.

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Date of creation: May 2008
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Handle: RePEc:cep:cepdps:dp0867

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Related research
Keywords: Unions; closure; employment growth; comparative; system-GMM;

Find related papers by JEL classification:
J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  2. Robert Krol & Shirley Svorny, 2007. "Unions and Employment Growth: Evidence from State Economic Recoveries," Journal of Labor Research, Springer, vol. 28(3), pages 525-535, July. [Downloadable!] (restricted)
  3. Blanchflower, David G & Millward, Neil & Oswald, Andrew J, 1991. "Unionism and Employment Behaviour," Economic Journal, Royal Economic Society, vol. 101(407), pages 815-34, July. [Downloadable!] (restricted)
  4. Agell, Jonas & Lommerud, Kjell Erik, 1993. " Egalitarianism and Growth," Scandinavian Journal of Economics, Blackwell Publishing, vol. 95(4), pages 559-79, December.
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  5. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August. [Downloadable!] (restricted)
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  6. Erzo G. J. Luttmer, 2007. "Selection, Growth, and the Size Distribution of Firms," The Quarterly Journal of Economics, MIT Press, vol. 122(3), pages 1103-1144, 08. [Downloadable!] (restricted)
  7. Cabral, Luis, 1995. "Sunk Costs, Firm Size and Firm Growth," Journal of Industrial Economics, Blackwell Publishing, vol. 43(2), pages 161-72, June. [Downloadable!] (restricted)
  8. Cabral, Luís M B & Ross, Thomas, 2007. "Are Sunk Costs a Barrier to Entry?," CEPR Discussion Papers 6162, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  9. Addison, John T. & Belfield, Clive R., 2002. "Unions and Employment Growth: The One Constant?," IZA Discussion Papers 479, Institute for the Study of Labor (IZA). [Downloadable!]
  10. Vroman, S. B., 1990. "The union-nonunion wage differential and monitoring costs," Economics Letters, Elsevier, vol. 32(4), pages 405-409, April. [Downloadable!] (restricted)
  11. Steve Bond, 2002. "Dynamic panel data models: a guide to microdata methods and practice," CeMMAP working papers CWP09/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. David Blanchflower & Alex Bryson, 2008. "Union Decline in Britain," CEP Discussion Papers dp0864, Centre for Economic Performance, LSE. [Downloadable!]
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