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Unions, Innovation, and Technology Adoption: New insights from the cross-country evidence

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  • Hristos Doucouliagos

    ()

  • Patrice Laroche

    ()

Abstract

There is currently no consensus regarding the effect of unions on technology. We apply meta-regression analysis to the extant econometric studies and find that unions depress investment in new technology. However, this adverse effect has been declining over time and is moderated by country differences in industrial relations and regulations: The adverse effect appears to increase with labor market flexibility. Unions also have an adverse effect on technology adoption. The paper considers both the direct and indirect effects of unions and shows that their effect on technology is larger than their effect on profitability and physical capital. The size of the union effect on technology is compared to the effects of human capital, industry concentration, firm size, growth, profitability, and physical capital.

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File URL: http://www.deakin.edu.au/buslaw/aef/workingpapers/papers/2010_16.pdf
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Bibliographic Info

Paper provided by Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance in its series Economics Series with number 2010_16.

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Date of creation: 18 Oct 2010
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Handle: RePEc:dkn:econwp:eco_2010_16

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Keywords: unions; R&D; innovation; technology adoption; regulation; meta-regression analysis;

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  1. Menezes-Filho, Naercio & Van Reenen, John, 2003. "Unions and Innovation: A Survey of the Theory and Empirical Evidence," CEPR Discussion Papers 3792, C.E.P.R. Discussion Papers.
  2. Menezes-Filho, Naercio & Ulph, David & Van Reenen, John, 1998. "The determination of R&D: Empirical evidence on the role of unions," European Economic Review, Elsevier, vol. 42(3-5), pages 919-930, May.
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Cited by:
  1. Francesco Venturini, 2011. "Looking into the black box of Schumpeterian Growth Theories: an empirical assessment of R&D races," Quaderni del Dipartimento di Economia, Finanza e Statistica 94/2011, Università di Perugia, Dipartimento Economia, Finanza e Statistica.

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