Enterprise Bargaining and Productivity: Evidence from the Business Longitudinal Survey
AbstractThe 1990s has seen bargaining, and more specifically, enterprising bargaining supplant arbitration as the dominant industrial relations paradigm. In large part, this change reflects widespread belief that enterprise bargaining would stimulate greater levels of productivity. Evidence in support of this link between enterprise bargaining and productivity, however, is both scant and unconvincing. In this paper the relationship between enterprise bargaining and productivity is revisited using data from the Business Longitudinal Study. This data source is unique in that it provides firm-level data for Australia where the individual firms are tracked over a four-year period. Further, the survey period commenced in 1994-95, which is ideal for studying the impacts of the emerging growth in enterprise agreement coverage. Finally, the BLS data provide an objective measure of value added output. Estimation of a simple production function using a random effects model revealed evidence of a strong contemporaneous relationship between registered enterprise agreements and productivity. Indeed, firms where all employees are on such agreements are estimated to have productivity levels that are 8.8 per cent higher than comparable firms but where no employees are covered by an enterprise agreement and are forced instead to rely on conditions specified in an industry award. However, despite this finding, it still proved impossible to establish a direct causal relationship between the introduction of enterprise agreements and subsequent productivity growth.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number wp2001n08.
Length: 38 pages
Date of creation: Jul 2001
Date of revision:
Contact details of provider:
Postal: Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Victoria 3010 Australia
Phone: +61 3 8344 2100
Fax: +61 3 8344 2111
Web page: http://www.melbourneinstitute.com/
More information through EDIRC
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.:
- Iain Campbell & Peter Brosnan, 1999. "Labour Market Deregulation in Australia: The slow combustion approach to workplace change," International Review of Applied Economics, Taylor & Francis Journals, vol. 13(3), pages 353-394.
- Hawke, Anne & Wooden, Mark, 1998. "The Changing Face of Australian Industrial Relations: A Survey," The Economic Record, The Economic Society of Australia, vol. 74(224), pages 74-88, March.
- Andrea Bassanini & Stefano Scarpetta & Ignazio Visco, 2000.
"Knowledge technology and economic growth: recent evidence from OECD countries,"
Working Paper Research
06, National Bank of Belgium.
- Andrea Bassanini & Stefano Scarpetta & Ignazio Visco, 2000. "Knowledge, Technology and Economic Growth: Recent Evidence from OECD Countries," OECD Economics Department Working Papers 259, OECD Publishing.
- Samantha Farmakis‐Gamboni & David Prentice, 2011.
"When Does Reducing Union Bargaining Power Increase Productivity? Evidence from the Workplace Relations Act,"
The Economic Record,
The Economic Society of Australia, vol. 87(279), pages 603-616, December.
- Robert Breunig & Marn-Heong Wong, .
"Australia's firm-level productivity -- a new perspective,"
Australasian Stata Users' Group Meetings 2004
2, Stata Users Group.
- Robert Breunig & Marn-Heong Wong, 2004. "Australia's Firm-level Productivity - a New Perspective," Econometric Society 2004 Australasian Meetings 177, Econometric Society.
- John Revesz Ralph Lattimore, 2002. "Statistical analysis of the use and impact of government business programs," Others 0201003, EconWPA.
- Elizabeth Webster & Yi-Ping Tseng, 2002.
"The Determinants of Relative Wage Change in Australia,"
Australian Economic Review,
The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 35(1), pages 70-84.
- Elizabeth Webster & Yi-Ping Tseng, 2000. "The Determinants of Relative Wage Change in Australia," Melbourne Institute Working Paper Series wp2000n23, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
- Samantha Farmakis-Gamboni & David Prentice, 2007.
"Does Reducing Union Bargaining Power Increase Productivity?,"
2007.04, School of Economics, La Trobe University.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jenny Chen).
If references are entirely missing, you can add them using this form.