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Imperfect Competition, Work Practices and Productivity Growth

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  • Haskel, Jonathan

Abstract

Many explanations for the recent productivity growth improvement in Britain have centered on changes in the labor market, arising from the changing role of trade unions for example. This paper asks whether changes in the product market are part of the story. The author proposes a model of imperfectly competitive firms and unionized workers that shows how product market conditions affect work practices and, thereby, productivity growth. Using data on a panel of eighty-one U.K. industries, 1980-86, he finds that changes in product market conditions are important in explaining productivity growth in the 1980s. Copyright 1991 by Blackwell Publishing Ltd

Suggested Citation

  • Haskel, Jonathan, 1991. "Imperfect Competition, Work Practices and Productivity Growth," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 53(3), pages 265-279, August.
  • Handle: RePEc:bla:obuest:v:53:y:1991:i:3:p:265-79
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    References listed on IDEAS

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    Cited by:

    1. Richard Disney & Jonathan Haskel & Ylva Heden, 2003. "Restructuring and productivity growth in uk manufacturing," Economic Journal, Royal Economic Society, vol. 113(489), pages 666-694, July.
    2. Haskel, Jonathan & Slaughter, Matthew J, 2001. "Trade, Technology and U.K. Wage Inequality," Economic Journal, Royal Economic Society, vol. 111(468), pages 163-187, January.
    3. Crafts, Nicholas, 2017. "The Postwar British Productivity Failure," CAGE Online Working Paper Series 350, Competitive Advantage in the Global Economy (CAGE).
    4. Uwe Jirjahn, 2014. "Works Councils and Collective Bargaining in Germany: A Simple but Crucial Theoretical Extension," Research Papers in Economics 2014-13, University of Trier, Department of Economics.
    5. Fedderke, J.W. & Bogetic, Z., 2009. "Infrastructure and Growth in South Africa: Direct and Indirect Productivity Impacts of 19 Infrastructure Measures," World Development, Elsevier, vol. 37(9), pages 1522-1539, September.
    6. Gustavo Crespi & Chiara Criscuolo & Jonathan Haskel, 2006. "Information Technology, Organisational Change and Productivity Growth: Evidence from UK Firms," Working Papers 558, Queen Mary University of London, School of Economics and Finance.
    7. Baggs, Jennifer & de Bettignies, Jean-Etienne, 2006. "Product Market Competition and Agency Costs," Analytical Studies Branch Research Paper Series 2006287e, Statistics Canada, Analytical Studies Branch.
    8. John H. Pencavel, 2004. "The Surprising Retreat of Union Britain," NBER Chapters,in: Seeking a Premier Economy: The Economic Effects of British Economic Reforms, 1980-2000, pages 181-232 National Bureau of Economic Research, Inc.
    9. Crafts, Nicholas, 2011. "British Relative Economic Decline Revisited," CEPR Discussion Papers 8384, C.E.P.R. Discussion Papers.
    10. Gaëtan Nicodème & Jacques-Bernard Sauner-Leroy, 2007. "Product Market Reforms and Productivity: A Review of the Theoretical and Empirical Literature on the Transmission Channels," Journal of Industry, Competition and Trade, Springer, vol. 7(1), pages 53-72, March.
    11. Zeljko Bogetic & Johannes Fedderke, 2005. "Infrastructure and Growth in South Africa: Benchmarking, Productivity and Investment Needs, paper presented at Economic Society of South Africa (ESSA) Conference, Durban, 9/7-9/2005," Public Economics 0510006, EconWPA.
    12. Nickell, Stephen, 1999. "Product markets and labour markets1," Labour Economics, Elsevier, vol. 6(1), pages 1-20, March.
    13. Alena Zemplinerova, 2010. "Competition policy and economic analysis: What can we learn from firm and industry data?," CERGE-EI Books, The Center for Economic Research and Graduate Education - Economics Institute, Prague, edition 1, number b07.
    14. Crafts, Nicholas, 2017. "The Postwar British Productivity Failure," The Warwick Economics Research Paper Series (TWERPS) 1142, University of Warwick, Department of Economics.
    15. Nicholas Crafts, 2013. "Returning to Growth: Policy Lessons from History," Fiscal Studies, Institute for Fiscal Studies, vol. 34(2), pages 255-282, June.
    16. Elena Podrecca, 2013. "Riforme del mercato dei prodotti e crescita della produttività. Teoria ed evidenza empirica," ECONOMIA E SOCIETÀ REGIONALE, FrancoAngeli Editore, vol. 2013(2), pages 10-41.
    17. Crafts, Nicholas, 2012. "Creating Competitive Advantage: Policy Lessons from History," CAGE Online Working Paper Series 91, Competitive Advantage in the Global Economy (CAGE).
    18. Crafts, Nicholas & O’Rourke, Kevin Hjortshøj, 2014. "Twentieth Century Growth*This research has received funding from the European Research Council under the European Union’s Seventh Framework Programme (FP7/2007-2013) / ERC grant agreement no. 249546.," Handbook of Economic Growth,in: Handbook of Economic Growth, edition 1, volume 2, chapter 6, pages 263-346 Elsevier.
    19. Crafts, Nicholas, 2012. "British relative economic decline revisited: The role of competition," Explorations in Economic History, Elsevier, vol. 49(1), pages 17-29.
    20. Iacovone, Leonardo, 2012. "The better you are the stronger it makes you: Evidence on the asymmetric impact of liberalization," Journal of Development Economics, Elsevier, vol. 99(2), pages 474-485.
    21. Jacques-Bernard Sauner-Leroy, 2003. "The impact of the implementation of the Single Market Programme on productive efficiency and on mark-ups in the European Union manufacturing industry," European Economy - Economic Papers 2008 - 2015 192, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    22. Nicholas Crafts & Mary O'Mahony, 2001. "A perspective on UK productivity performance," Fiscal Studies, Institute for Fiscal Studies, vol. 22(3), pages 271-306, September.
    23. Baggs, Jennifer & de Bettignies, Jean-Etienne, 2006. "Concurrence sur le marche des produits et couts de delegation," Direction des etudes analytiques : documents de recherche 2006287f, Statistics Canada, Direction des etudes analytiques.
    24. Ignacio Hernando & Javier Valles, 1994. "Algunas diferencias en la productividad de las empresas manufactureras españolas," Investigaciones Economicas, Fundación SEPI, vol. 18(1), pages 117-141, January.
    25. Moreton, David R., 1998. "An open shop trade union model of wages, effort and membership," European Journal of Political Economy, Elsevier, vol. 14(3), pages 511-527, August.

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