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New Evidence on Unions and Plant Closings: Britain in the 1990s

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  • John T. Addison
  • John S. Heywood
  • Xiangdong Wei

Abstract

In this paper, we exploit the longitudinal element of the 1990 and 1998 Workplace Employee Relations Surveys for Britain to investigate the effect of unionism on establishment closings. Contrary to both recent U.S. research and long‐standing British work, we find a strong positive association between two measures of unionism—union recognition for collective bargaining purposes and union coverage—and plant closings. This association is robust to the inclusion of highly detailed industry controls but is driven by plants that are parts of multiestablishment entities. No such relationship obtains in the case of single‐plant enterprises. In explaining our findings, we address their consistency with the widely perceived reduction in the “disadvantages of (British) unionism” in recent years.

Suggested Citation

  • John T. Addison & John S. Heywood & Xiangdong Wei, 2003. "New Evidence on Unions and Plant Closings: Britain in the 1990s," Southern Economic Journal, John Wiley & Sons, vol. 69(4), pages 822-841, April.
    • Handle: RePEc:wly:soecon:v:69:y:2003:i:4:p:822-841
    DOI: 10.1002/j.2325-8012.2003.tb00535.x
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    References listed on IDEAS

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    1. Brändle, Tobias, 2024. "Unions and Collective Bargaining: The Influence on Wages, Employment and Firm Survival," GLO Discussion Paper Series 1457, Global Labor Organization (GLO).
    2. John T. Addison & Paulino Teixeira & Philipp Grunau & Lutz Bellmann, 2023. "Works council ‘disaffection’ and establishment survivability," Scottish Journal of Political Economy, Scottish Economic Society, vol. 70(1), pages 38-67, February.

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