Unionisation, short-run flexibility and cost efficiency: Evidence from U.S. manufacturing
AbstractFlexibility is of great interest to policy makers and in the popular policy debate, unions are believed to be a main impediment to achieving it. However, these beliefs are not based on firm empirical foundations. Using a new dataset on U.S. three digit manufacturing industries from 1971 - 1994, we quantify, for the first time, Stigler's concept of output flexibility, estimate input flexibility and quantify the effects of unionisation on both. We find that on average unionisation reduces input flexibility by about 50%, raises average costs by about 3% but reduces output flexibility by just 0.35%.
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Bibliographic InfoPaper provided by School of Economics, La Trobe University in its series Working Papers with number 2000.04.
Length: 38 pages
Date of creation: Jun 2000
Date of revision:
Labour Market; Workers Representation; Costs;
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Find related papers by JEL classification:
- J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
- L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
- L6 - Industrial Organization - - Industry Studies: Manufacturing
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