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Unionization And Employment Behaviour

Author

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  • BLANCHFLOWER, D.
  • MILLWARD, N.
  • OSWALD, A.

Abstract

Although there exists a large literature on the effects of trade unions upon wages, there is no published work that uses microeconomic data to examine the employment consequences of unionization. The paper addresses this issue with a new British data set and shows that, even after the addition of a substantial set of control variables, there is a strong association between poor employment performance and the presence of trade unions. The union employment growth differential is estimated at approximately -3% per annum.
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Suggested Citation

  • Blanchflower, D. & Millward, N. & Oswald, A., 1989. "Unionization And Employment Behaviour," Papers 339, London School of Economics - Centre for Labour Economics.
  • Handle: RePEc:fth:lseple:339
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    1. Daniel S. Hamermesh, 1991. "Data Difficulties in Labor Economics," NBER Chapters,in: Fifty Years of Economic Measurement: The Jubilee of the Conference on Research in Income and Wealth, pages 273-298 National Bureau of Economic Research, Inc.
    2. Freeman, Richard, 1988. "Union density and economic performance : An analysis of U.S. States," European Economic Review, Elsevier, vol. 32(2-3), pages 707-716, March.
    3. Leonard, Jonathan S., 1987. "Employment Variation and Wage Rigidity: A Comparison of Union and Non-Union Plants," Institute for Research on Labor and Employment, Working Paper Series qt1qn6g5bc, Institute of Industrial Relations, UC Berkeley.
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    5. Oswald, Andrew J., 1988. "Introduction," European Economic Review, Elsevier, vol. 32(2-3), pages 695-697, March.
    6. Blanchflower, David G & Oswald, Andrew J & Garrett, Mario D, 1990. "Insider Power in Wage Determination," Economica, London School of Economics and Political Science, vol. 57(226), pages 143-170, May.
    7. Stewart, Mark B, 1983. "Relative Earnings and Individual Union Membership in the United Kingdom," Economica, London School of Economics and Political Science, vol. 50(198), pages 111-125, May.
    8. Gaskins, Darius Jr., 1971. "Dynamic limit pricing: Optimal pricing under threat of entry," Journal of Economic Theory, Elsevier, vol. 3(3), pages 306-322, September.
    9. Stafford, Frank, 1987. "Forestalling the demise of empirical economics: The role of microdata in labor economics research," Handbook of Labor Economics,in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 7, pages 387-423 Elsevier.
    10. Nickell, S.J., 1987. "Dynamic models of labour demand," Handbook of Labor Economics,in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 9, pages 473-522 Elsevier.
    11. Freeman, Richard B & Medoff, James L, 1982. "Substitution between Production Labor and Other Inputs in Unionized and Nonunionized Manufacturing," The Review of Economics and Statistics, MIT Press, vol. 64(2), pages 220-233, May.
    12. Addison, John T & Hirsch, Barry T, 1989. "Union Effects on Productivity, Profits, and Growth: Has the Long Run Arrived?," Journal of Labor Economics, University of Chicago Press, vol. 7(1), pages 72-105, January.
    13. Blanchflower, David G. & Millward, Neil, 1988. "Trade unions and employment change : An analysis of British establishment data," European Economic Review, Elsevier, vol. 32(2-3), pages 717-726, March.
    14. Clark, Kim B, 1984. "Unionization and Firm Performance: The Impact on Profits, Growth, and Productivity," American Economic Review, American Economic Association, vol. 74(5), pages 893-919, December.
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    Cited by:

    1. P. B. Beaumont & R. I. D. Harris, 1991. "Trade Union Recognition and Employment Contraction. Britain, 1980–1984," British Journal of Industrial Relations, London School of Economics, vol. 29(1), pages 49-58, March.
    2. Mark Bils, 1990. "Wage and Employment Patterns in Long-Term Contracts When Labor is Quasi-Fixed," NBER Chapters,in: NBER Macroeconomics Annual 1990, Volume 5, pages 187-236 National Bureau of Economic Research, Inc.
    3. Sushil Wadhwani, 1990. "The Effect of Unions on Productivity Growth, Investment and Employment: A Report on some Recent Work," British Journal of Industrial Relations, London School of Economics, vol. 28(3), pages 371-385, November.
    4. Francesco Bogliacino & Mariacristina Piva & Marco Vivarelli, 2011. "Job Creation Effects of R&D Expenditures: Are High-tech Sectors the Key?," JRC Working Papers on Corporate R&D and Innovation 2011-10, Joint Research Centre (Seville site).
    5. Bogliacino, Francesco & Piva, Mariacristina & Vivarelli, Marco, 2011. "R&D and Employment: Some Evidence from European Microdata," IZA Discussion Papers 5908, Institute for the Study of Labor (IZA).
    6. Francesco Bogliacino & Mariacristina Piva & Marco Vivarelli, 2011. "The impact of R&D on employment in Europe: a firm-level analysis," Working Papers 2011/20, Institut d'Economia de Barcelona (IEB).
    7. William C. Gruben & Keith R. Phillips, 1990. "Unionization and Unemployment Rates: A Re-Examination Of Olson'S Labor Cartelization Hypothesis," The Review of Regional Studies, Southern Regional Science Association, vol. 20(1), pages 1-9, Winter.

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    Keywords

    trade unions ; wages ; employment;

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