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Unionization and Employment Behavior

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  • David G. Blanchflower
  • Neil Millward
  • Andrew J. Oswald

Abstract

Although there exists a large literature on the effects of trade unions upon wages, there is no published work that uses microeconomic data to examine the employment consequences of unionization. The paper addresses this issue with a new British data set and shows that, even after the addition of a substantial set of control variables, there is a strong association between poor employment performance and the presence of trade unions. The union employment growth differential is estimated at approximately -3% per annum.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 3180.

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Date of creation: Nov 1989
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Publication status: published as Economic Journal, Vol. 101, No. 407, pp.815-834, July 1991.
Handle: RePEc:nbr:nberwo:3180

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References

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  1. Gaskins, Darius Jr., 1971. "Dynamic limit pricing: Optimal pricing under threat of entry," Journal of Economic Theory, Elsevier, Elsevier, vol. 3(3), pages 306-322, September.
  2. Freeman, Richard, 1988. "Union density and economic performance : An analysis of U.S. States," European Economic Review, Elsevier, Elsevier, vol. 32(2-3), pages 707-716, March.
  3. Blanchflower, David G. & Millward, Neil, 1988. "Trade unions and employment change : An analysis of British establishment data," European Economic Review, Elsevier, Elsevier, vol. 32(2-3), pages 717-726, March.
  4. Blanchflower, David G & Oswald, Andrew J & Garrett, Mario D, 1990. "Insider Power in Wage Determination," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 57(226), pages 143-70, May.
  5. Nickell, S.J., 1987. "Dynamic models of labour demand," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 9, pages 473-522 Elsevier.
  6. Oswald, Andrew J., 1988. "Introduction," European Economic Review, Elsevier, Elsevier, vol. 32(2-3), pages 695-697, March.
  7. Daniel S. Hamermesh, 1988. "Data Difficulties in Labor Economics," NBER Working Papers 2622, National Bureau of Economic Research, Inc.
    • Daniel S. Hamermesh, 1991. "Data Difficulties in Labor Economics," NBER Chapters, in: Fifty Years of Economic Measurement: The Jubilee of the Conference on Research in Income and Wealth, pages 273-298 National Bureau of Economic Research, Inc.
  8. Stewart, Mark B, 1983. "Relative Earnings and Individual Union Membership in the United Kingdom," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 50(198), pages 111-25, May.
  9. Addison, John T & Hirsch, Barry T, 1989. "Union Effects on Productivity, Profits, and Growth: Has the Long Run Arrived?," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 7(1), pages 72-105, January.
  10. Stafford, Frank, 1987. "Forestalling the demise of empirical economics: The role of microdata in labor economics research," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 7, pages 387-423 Elsevier.
  11. Dunne, Timothy & Roberts, Mark J & Samuelson, Larry, 1989. "Plant Turnover and Gross Employment Flows in the U.S. Manufacturing Sector," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 7(1), pages 48-71, January.
  12. Freeman, Richard B & Medoff, James L, 1982. "Substitution between Production Labor and Other Inputs in Unionized and Nonunionized Manufacturing," The Review of Economics and Statistics, MIT Press, vol. 64(2), pages 220-33, May.
  13. Clark, Kim B, 1984. "Unionization and Firm Performance: The Impact on Profits, Growth, and Productivity," American Economic Review, American Economic Association, American Economic Association, vol. 74(5), pages 893-919, December.
  14. Leonard, Jonathan S., 1987. "Employment Variation and Wage Rigidity: A Comparison of Union and Non-Union Plants," Institute for Research on Labor and Employment, Working Paper Series, Institute of Industrial Relations, UC Berkeley qt1qn6g5bc, Institute of Industrial Relations, UC Berkeley.
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Cited by:
  1. Francesco Bogliacino & Mariacristina Piva & Marco Vivarelli, 2011. "The impact of R&D on employment in Europe: A firm-level analysis," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE) dises1176, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
  2. Francesco Bogliacino & Mariacristina Piva & Marco Vivarelli, 2011. "Job Creation Effects of R&D Expenditures: Are High-tech Sectors the Key?," JRC-IPTS Working Papers on Corporate R&D and Innovation 2011-10, Institute of Prospective Technological Studies, Joint Research Centre.
  3. Mark Bils, 1990. "Wage and Employment Patterns in Long-Term Contracts When Labor is Quasi-Fixed," NBER Chapters, in: NBER Macroeconomics Annual 1990, Volume 5, pages 187-236 National Bureau of Economic Research, Inc.
  4. Bogliacino, Francesco & Piva, Mariacristina & Vivarelli, Marco, 2011. "R&D and Employment: Some Evidence from European Microdata," IZA Discussion Papers 5908, Institute for the Study of Labor (IZA).

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