Naercio Menezes-Filho Helio Zylberstajn Jose Paulo Chahad Elaine Pazello
Abstract
Using a pooled sample, this paper indicates that unions seem to affect the economic performance of Brazilian establishments, especially in terms of profitability, employment and productivity. Unions tend to reduce profitability, whereas the relationship between union density and productivity, employment and average wages seems to be concave. These performance indicators first rise with union density up to a certain density level (usually about 50 percent) and then start to decline. These results indicate that some unionism may be good for the plants` economic performance, although too much unionism may start having negative effects.
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Paper provided by Inter-American Development Bank, Research Department in its series RES Working Papers with number
3157.
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