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Unions, Training, and Firm Performance

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  • Addison, John T.

    (Durham University Business School)

  • Belfield, Clive R.

    (Queens College, CUNY)

Abstract

The present paper uses a combination of workplace and linked employee-workplace data from the 1998 Workplace Employee Relations Survey and the 2004 Workplace Employment Relations Survey to examine the impact of unions on training incidence, training intensity/coverage, and training duration. It also examines the impact of unions and training on earnings and a measure of establishment labour productivity. In addition, the implications of training for the firm’s bottom line are evaluated. Union effects on training emerge as fairly subtle, and are more positive when using individual rather than plant-wide training data. A positive impact of training on earnings is detected in both the individual and plant-wide wage data, albeit only for the earlier survey. Consistent with other recent findings, the effects of union recognition on earnings are today rather muted, while union-training interaction effects vary greatly. Instrumenting training provides positive results for the labour productivity outcome and, in the case of the earlier survey, for the financial performance indicator as well. However, some negative effects of unions are now also detected.

Suggested Citation

  • Addison, John T. & Belfield, Clive R., 2008. "Unions, Training, and Firm Performance," IZA Discussion Papers 3294, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp3294
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    References listed on IDEAS

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    Cited by:

    1. Fabio Berton & Anna Carreri & Francesco Devicienti & Andrea Ricci, 2023. "The collective voice of unions and workplace training in Italy: New insights from mixed methods," British Journal of Industrial Relations, London School of Economics, vol. 61(3), pages 595-622, September.
    2. Kronenberg, Kristin & Carree, Martin, 2010. "The effects of workforce composition, labor turnover, and the qualities of entering and exiting workers on productivity growth," MPRA Paper 25844, University Library of Munich, Germany.

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    More about this item

    Keywords

    earnings; training duration; training intensity/coverage; training Incidence; employer-provided training; bargaining structure; union recognition; financial performance; labour productivity;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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