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A Model of Labour Productivity and Union Density in British Private Sector Unionised Establishments

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  • Moreton, David

Abstract

In this paper, a micro theoretic model of the simultaneous determination of labor productivity and union density is developed and estimated using British establishment-level data from the 1990 Workplace Employee Relations Survey. The main empirical finding is that higher union bargaining power does not necessarily lower labor productivity in union firms, ceteris paribus. Separate bargaining by multiple unions has a negative effect but productivity is higher if management recommends union membership. There is also evidence that, if unions can more effectively provide services to their members and secure management support for union membership, union density may recover. Copyright 1999 by Royal Economic Society.

Suggested Citation

  • Moreton, David, 1999. "A Model of Labour Productivity and Union Density in British Private Sector Unionised Establishments," Oxford Economic Papers, Oxford University Press, vol. 51(2), pages 322-344, April.
    • Handle: RePEc:oup:oxecpp:v:51:y:1999:i:2:p:322-44
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    Cited by:

    1. Vaona, Andrea, 2006. "The duration of union membership: An empirical study," Kiel Working Papers 1268, Kiel Institute for the World Economy (IfW Kiel).
    2. Bryson, Alex, 2001. "Union effects on managerial and employee perceptions of employee relations in Britain," LSE Research Online Documents on Economics 4957, London School of Economics and Political Science, LSE Library.
    3. Goerke, Laszlo & Pannenberg, Markus, 2011. "Trade union membership and dismissals," Labour Economics, Elsevier, vol. 18(6), pages 810-821.
    4. Goerke, Laszlo & Pannenberg, Markus, 2015. "Trade union membership and sickness absence: Evidence from a sick pay reform," Labour Economics, Elsevier, vol. 33(C), pages 13-25.
    5. Laszlo Goerke & Markus Pannenberg, 2012. "Risk Aversion and Trade‐Union Membership," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(2), pages 275-295, June.
    6. Bryson, Alex & Wilkinson, David, 2002. "Collective bargaining and workplace performance: an investigation using the workplace employee relations survey 1998," LSE Research Online Documents on Economics 4995, London School of Economics and Political Science, LSE Library.
    7. Schnabel, Claus, 2002. "Determinants of trade union membership," Discussion Papers 15, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    8. Goerke Laszlo & Pannenberg Markus, 2004. "Norm-Based Trade Union Membership: Evidence for Germany," German Economic Review, De Gruyter, vol. 5(4), pages 481-504, December.
    9. Alex Bryson, 2006. "Union Free-Riding in Britain and New Zealand," CEP Discussion Papers dp0713, Centre for Economic Performance, LSE.
    10. Laszlo Goerke & Markus Pannenberg, 2007. "Trade Union Membership and Works Councils in West Germany," Industrielle Beziehungen - Zeitschrift fuer Arbeit, Organisation und Management - The German Journal of Industrial Relations, Rainer Hampp Verlag, vol. 14(2), pages 154-175.
    11. S. Dobbelaere, 2003. "Joint Estimation of Price-Cost Margins and Union Bargaining Power for Belgian Manufacturing," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 03/171, Ghent University, Faculty of Economics and Business Administration.
    12. Nora Ilona Elek, 2016. "Selective Incentives And Trade Union Density," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 340-350, July.
    13. Schnabel, Claus & Wagner, Joachim, 2003. "Determinants of Trade Union Membership in Western Germany: Evidence from Micro Data, 1980-2000," IZA Discussion Papers 708, Institute of Labor Economics (IZA).

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