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Union Density, Productivity, and Wages

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  • Alex Bryson
  • Erling Barth
  • Harald Dale-Olsen

Abstract

We exploit tax-induced exogenous variance in the price of union membership to identify the effects of changes in firm union density on firm productivity and wages in the population of Norwegian firms over the period 2001 to 2012. Increases in union density lead to substantial increases in firm productivity and wages having accounted for the potential endogeneity of unionization. The wage effect is larger in more productive firms, consistent with rent-sharing models.

Suggested Citation

  • Alex Bryson & Erling Barth & Harald Dale-Olsen, 2017. "Union Density, Productivity, and Wages," National Institute of Economic and Social Research (NIESR) Discussion Papers 481, National Institute of Economic and Social Research.
    • Handle: RePEc:nsr:niesrd:481
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    References listed on IDEAS

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    Cited by:

    1. Cardullo, Gabriele & Conti, Maurizio & Sulis, Giovanni, 2018. "Unions, Two-Tier Bargaining and Physical Capital Investment: Theory and Firm-Level Evidence from Italy," IZA Discussion Papers 12008, Institute of Labor Economics (IZA).
    2. Marinescu, Ioana & Ouss, Ivan & Pape, Louis-Daniel, 2021. "Wages, hires, and labor market concentration," Journal of Economic Behavior & Organization, Elsevier, vol. 184(C), pages 506-605.
    3. Andrea Garnero & François Rycx & Isabelle Terraz, 2020. "Productivity and Wage Effects of Firm‐Level Collective Agreements: Evidence from Belgian Linked Panel Data," British Journal of Industrial Relations, London School of Economics, vol. 58(4), pages 936-972, December.
    4. Muhammad Umar Boodoo, 2020. "The Influence of Unions on CSR: Is There a Trade‐Off Between Employee‐Oriented and Non–Employee‐Oriented Policies?," British Journal of Industrial Relations, London School of Economics, vol. 58(4), pages 816-843, December.
    5. Pedro Silva Martins, 2019. "The Microeconomic Impacts of Employee Representatives: Evidence from Membership Thresholds," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 58(4), pages 591-622, October.
    6. Erling Barth & Alex Bryson & Harald Dale-Olsen, 2020. "Do Public Subsidies of Union Membership Increase Union Membership Rates?," DoQSS Working Papers 20-14, Quantitative Social Science - UCL Social Research Institute, University College London.
    7. Alex Bryson & Harald Dale-Olsen, 2020. "Unions, Tripartite Competition and Innovation," DoQSS Working Papers 20-02, Quantitative Social Science - UCL Social Research Institute, University College London.
    8. Philip Arestis, 2021. "UK and other advanced economies productivity and income inequality," International Review of Applied Economics, Taylor & Francis Journals, vol. 35(3-4), pages 355-370, July.
    9. Laroche, Patrice, 2020. "Unions, Collective Bargaining and Firm Performance," GLO Discussion Paper Series 728, Global Labor Organization (GLO).

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    More about this item

    Keywords

    trade unions; union density; productivity; wages;
    All these keywords.

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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