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Unionization and Productivity: Micro-Econometric Evidence

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  • Kim B. Clark

Abstract

It is widely agreed that unionization affects the rules and procedures governing the employment relation in organized establishments. The effect of these changes on establishment productivity, however, is unclear. This issue is examined using establishment level data from the U. S. cement industry. A positive union effect on the order of 6–8 percent is found in both cross-section and time series data. Although some caution is in order in interpreting the results, the evidence suggests that unionization can lead to productive changes in the operation of the enterprise.

Suggested Citation

  • Kim B. Clark, 1980. "Unionization and Productivity: Micro-Econometric Evidence," The Quarterly Journal of Economics, Oxford University Press, vol. 95(4), pages 613-639.
  • Handle: RePEc:oup:qjecon:v:95:y:1980:i:4:p:613-639.
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    File URL: http://hdl.handle.net/10.2307/1885484
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    Cited by:

    1. Bishnupriya Gupta, 2011. "Wages, unions, and labour productivity: evidence from Indian cotton mills," Economic History Review, Economic History Society, vol. 64(s1), pages 76-98, February.
    2. repec:ilo:ilowps:433276 is not listed on IDEAS
    3. David S. Lee & Alexandre Mas, 2012. "Long-Run Impacts of Unions on Firms: New Evidence from Financial Markets, 1961--1999," The Quarterly Journal of Economics, Oxford University Press, vol. 127(1), pages 333-378.
    4. Alberto Salvo, 2004. "Inferring Conduct under the Threat of Entry: The Case of the Brazilian Cement Industry," STICERD - Economics of Industry Papers 38, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    5. Elisabetta Magnani & David Prentice, 2000. "Unionisation, short-run flexibility and cost efficiency: Evidence from U.S. manufacturing," Working Papers 2000.04, School of Economics, La Trobe University.
    6. Nguyen, Sang V & Streitwieser, Mary L, 1999. "Factor Substitution in U.S. Manufacturing: Does Plant Size Matter?," Small Business Economics, Springer, vol. 12(1), pages 41-57, February.
    7. Jaime Saavedra-Chanduví & Máximo Torero, 2002. "Union Density Changes and Union Effects On Firm Performance in Peru," Research Department Publications 3158, Inter-American Development Bank, Research Department.
    8. Shaw, Kathryn, 2009. "Insider econometrics: A roadmap with stops along the way," Labour Economics, Elsevier, vol. 16(6), pages 607-617, December.
    9. repec:eee:quaeco:v:67:y:2018:i:c:p:326-333 is not listed on IDEAS
    10. Sigfrido Lee & Carmen Urizar H., 2003. "The Effects of Unions on Productivity: Evidence from Large Coffee Producers in Guatemala," Research Department Publications 3166, Inter-American Development Bank, Research Department.
    11. Adamson, Dwight W. & Partridge, Mark, 1994. "The Influence of International on Union Firm Hiring and Worker Union Choice," Economics Staff Papers 232237, South Dakota State University, Department of Economics.
    12. Richard B. Freeman, 2005. "What Do Unions Do?-- The 2004 M-Brane Stringtwister Edition," Journal of Labor Research, Transaction Publishers, vol. 26(4), pages 641-668, November.
    13. Gose, Karina & Sadrieh, Abdolkarim, 2014. "Strike, coordination, and dismissal in uniform wage settings," European Economic Review, Elsevier, vol. 70(C), pages 145-158.
    14. repec:ces:ifofob:84 is not listed on IDEAS
    15. Jans, Ivette & Rosenbaum, David I., 1997. "Multimarket contact and pricing: Evidence from the U.S. cement industry," International Journal of Industrial Organization, Elsevier, vol. 15(3), pages 391-412, May.

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