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Productivity, Efficiency and Strike Activity

Author

Listed:
  • A. P. Dickerson
  • P. A. Geroski
  • K. G. Knight

Abstract

The economic impact of unions has received increasing attention in the literature. However, the channels through which unions impinge on performance are seldom identified. This paper examines the impact of industrial conflict on output and factor productivity in a panel of British manufacturing industries for the 1970s. Production frontiers augmented by various dimensions of strike activity are estimated and strikes are found to have a negligible net impact on output. Furthermore, while there is some weak evidence to suggest that union presence adversely affects (relative) efficiency, this effect is not derived from higher levels of strike activity.

Suggested Citation

  • A. P. Dickerson & P. A. Geroski & K. G. Knight, 1997. "Productivity, Efficiency and Strike Activity," International Review of Applied Economics, Taylor & Francis Journals, vol. 11(1), pages 119-134.
    • Handle: RePEc:taf:irapec:v:11:y:1997:i:1:p:119-134
    DOI: 10.1080/02692179700000007
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    References listed on IDEAS

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    1. Brown, Charles & Medoff, James, 1978. "Trade Unions in the Production Process," Journal of Political Economy, University of Chicago Press, vol. 86(3), pages 355-378, June.
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    6. Richard McHugh, 1991. "Productivity Effects of Strikes in Struck and Nonstruck Industries," ILR Review, Cornell University, ILR School, vol. 44(4), pages 722-732, July.
    7. Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-1426, November.
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    9. Cornwell, Christopher & Schmidt, Peter & Sickles, Robin C., 1990. "Production frontiers with cross-sectional and time-series variation in efficiency levels," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 185-200.
    10. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
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    Cited by:

    1. Laroche, Patrice, 2020. "Unions, Collective Bargaining and Firm Performance," GLO Discussion Paper Series 728, Global Labor Organization (GLO).

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