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Unions and Plant Closings in Britain: New Evidence from the 1990/98 WERS

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Author Info
Addison, John T. () (Moore School of Business, University of South Carolina and IZA, Bonn)
Heywood, John S. (University of Wisconsin at Milwaukee and University of Birmingham)
Wei, Xiangdong (Lingnan University Hong Kong, and University of Birmingham)

Additional information is available for the following registered author(s):

Abstract

In this paper we exploit the longitudinal element of the 1990 and 1998 Workplace Employee Relations Surveys for Britain to investigate the effect of unionism on establishment closings. Contrary to both recent U.S. research and British work using information from the earlier workplace surveys, we find a robust positive association between two measures of unionism - union recognition for collective bargaining purposes and union coverage - and plant closings. This association survives the incorporation of very detailed industry controls but is driven by plants that are parts of multi-establishment enterprises. There appears to be little or no statistically significant association for single plant enterprises. In explaining our findings, we address their consistency with the widely perceived reduction in the "disadvantages of [British] unionism" in recent years.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 352.

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Length: 48 pages
Date of creation: Aug 2001
Date of revision:
Handle: RePEc:iza:izadps:dp352

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Related research
Keywords: union recognition; union coverage; plant closures; WERS;

Other versions of this item:

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
J65 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment Insurance; Severance Pay; Plant Closings

This paper has been announced in the following NEP Reports:

References listed on IDEAS
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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    Other versions:
  3. Manning, Alan, 1993. "Pre-strike Ballots and Wage-Employment Bargaining," Oxford Economic Papers, Oxford University Press, vol. 45(3), pages 422-39, July. [Downloadable!] (restricted)
    Other versions:
  4. 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)
  5. Denny, Kevin & Nickell, Stephen J, 1992. "Unions and Investment in British Industry," Economic Journal, Royal Economic Society, vol. 102(413), pages 874-87, July. [Downloadable!] (restricted)
    Other versions:
  6. David Metcalf, 1993. "Industrial Relations and Economic Performance," CEP Discussion Papers dp0129, Centre for Economic Performance, LSE.
  7. Kuhn, Peter, 1986. "Wages, Effort, and Incentive Compatibility in Life-Cycle Employment Contracts," Journal of Labor Economics, University of Chicago Press, vol. 4(1), pages 28-49, January. [Downloadable!] (restricted)
  8. Addison, John T & Chilton, John B, 1998. "Self-Enforcing Union Contracts: Efficient Investment and Employment," Journal of Business, University of Chicago Press, vol. 71(3), pages 349-69, July. [Downloadable!] (restricted)
  9. Richard B. Freeman & Morris M. Kleiner, 1999. "Do unions make enterprises insolvent?," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 52(4), pages 510-527, July.
    Other versions:
  10. Macpherson, D.A. & Dunne, T., 1992. "Unionism and Gross Employment Flows," Working Papers 1992_10_5, Department of Economics, Florida State University.
  11. Dunne, T. & Roberts, M.J., 1990. "Wages And The Risk Of Plant Closing," Papers 6-90-2, Pennsylvania State - Department of Economics.
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  13. Disney, Richard & Gosling, Amanda & Machin, Stephen, 1996. "What Has Happened to Union Recognition in Britain?," Economica, London School of Economics and Political Science, vol. 63(249), pages 1-18, February. [Downloadable!] (restricted)
  14. Naercio Menezes-Filho & David Ulph & John Van Reenen, 1998. "R&D and unionism: Comparative evidence from British companies and establishments," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 52(1), pages 45-63, October.
  15. Machin, Stephen & Stewart, Mark, 1996. "Trade Unions and Financial Performance," Oxford Economic Papers, Oxford University Press, vol. 48(2), pages 213-41, April. [Downloadable!] (restricted)
    Other versions:
  16. Clark, Kim B, 1984. "Unionization and Firm Performance: The Impact on Profits, Growth, and Productivity," American Economic Review, American Economic Association, vol. 74(5), pages 893-919, December. [Downloadable!] (restricted)
  17. Lazear, Edward P, 1983. "A Competitive Theory of Monopoly Unionism," American Economic Review, American Economic Association, vol. 73(4), pages 631-43, September. [Downloadable!] (restricted)
  18. 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. [Downloadable!] (restricted)
Full references

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. 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!]
  2. David G. Blanchflower, 2006. "A Cross-Country Study of Union Membership," IZA Discussion Papers 2016, Institute for the Study of Labor (IZA). [Downloadable!]
  3. Addison, John T. & Siebert, W. Stanley, 2002. "Changes in Collective Bargaining in the U.K," IZA Discussion Papers 562, Institute for the Study of Labor (IZA). [Downloadable!]
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