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Unions and the Financial Performance of British Private Sector Establishments

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  • Machin, Stephen J
  • Stewart, Mark B

Abstract

This paper considers the relationship between unions and financial performance using data from the 1980 and 1984 Workplace Industrial Relations Surveys. A qualitative indicator of financial performance is utilized and ordered probit estimates presented. These indicate that unionized establishments are characterized by lower performance levels than are non-union concerns. The interface between union effects and relative market power is also explored and the ability of unions to extract a share of the available rents is found to be greater if the plants in which they are located possess a higher market share. Copyright 1990 by John Wiley & Sons, Ltd.

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  • Machin, Stephen J & Stewart, Mark B, 1990. "Unions and the Financial Performance of British Private Sector Establishments," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 5(4), pages 327-350, Oct.-Dec..
    • Handle: RePEc:jae:japmet:v:5:y:1990:i:4:p:327-50
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