Unions, Wages and Labour Productivity : Evidence from Indian Cotton Mills
AbstractThis paper uses firm level data from all the textile producing regions in India to examine the relation between wages, unionization and labour productivity. We find that fewer workers were employed per machine in the unionized mills in Bombay and Ahmedabad, as compared to non-unionized regions implying that low labour productivity was not due to union resistance to increased work intensity. Our findings suggest that while low wages in India encouraged overmanning, higher wages, prompted by unionization, had productivity enhancing effects. We explore alternative explanations for low labour productivity, arising from the managerial and institutional structure of Indian cotton mills.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Warwick, Department of Economics in its series The Warwick Economics Research Paper Series (TWERPS) with number 753.
Length: 37 pages
Date of creation: 2006
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-07-28 (All new papers)
- NEP-CWA-2006-07-28 (Central & Western Asia)
- NEP-DEV-2006-07-28 (Development)
- NEP-EFF-2006-07-28 (Efficiency & Productivity)
- NEP-HRM-2006-07-28 (Human Capital & Human Resource Management)
- NEP-LAB-2006-07-28 (Labour Economics)
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.:
- Stephen L. Parente & Edward C. Prescott, 1997.
"Monopoly rights: a barrier to riches,"
236, Federal Reserve Bank of Minneapolis.
- Steven G. Allen, 1986. "Unionization and productivity in office building and school construction," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 39(2), pages 187-201, January.
- Brian Bemmels, 1987. "How unions affect productivity in manufacturing plants," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 40(2), pages 241-253, January.
- Machin, S.J., 1988.
"The Productivity Effects Of Unionisation And Firm Size In British Engineering Firms,"
The Warwick Economics Research Paper Series (TWERPS)
293, University of Warwick, Department of Economics.
- Machin, Stephen J, 1991. "The Productivity Effects of Unionization and Firm Size in British Engineering Firms," Economica, London School of Economics and Political Science, vol. 58(232), pages 479-90, November.
- Steven G. Allen, 1986. "Unionization and Productivity in Office Building and School Construction," NBER Working Papers 1139, National Bureau of Economic Research, Inc.
- Brown, Charles & Medoff, James, 1978. "Trade Unions in the Production Process," Journal of Political Economy, University of Chicago Press, vol. 86(3), pages 355-78, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Helen Neal).
If references are entirely missing, you can add them using this form.