Unions and Profits: A meta-regression Analysis
The effect of unions on profits continues to be an unresolved theoretical and empirical issue. In this paper, clustered data analysis and hierarchical linear meta-regression models are applied to the population of forty-five econometric studies that report 532 estimates of the direct effect of unions on profits. Unions have a significant negative effect on profits in the United States, and this effect is larger when market-based measures of profits are used. Separate meta-regression analyses are used to identify the effects of market power and long-lived assets on profits, as well as the sources of union-profit effects. The accumulated evidence rejects market power as a source of union-profit effects. While the case is not yet proven, there is some evidence in support of the appropriation of quasi-rent hypothesis. There is a clear need for further American and non-American primary research in this area.
|Date of creation:||2009|
|Publication status:||Published in Industrial Relations, Wiley, 2009, 48 (1), pp.146-184|
|Note:||View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00648569|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Conyon, M & Machin, Stephen, 1991. "The Determination of Profit Margins in UK Manufacturing," Journal of Industrial Economics, Wiley Blackwell, vol. 39(4), pages 569-582, June.
- Menezes-Filho, Naercio Aquino, 1997. "Unions and Profitability over the 1980s: Some Evidence on Union-Firm Bargaining in the United Kingdom," Economic Journal, Royal Economic Society, vol. 107(442), pages 651-670, May.
- David E. Guest & Jonathan Michie & Neil Conway & Maura Sheehan, 2003. "Human Resource Management and Corporate Performance in the UK," British Journal of Industrial Relations, London School of Economics, vol. 41(2), pages 291-314, 06.
- Djankov, Simeon & Murrell, Peter, 2002.
"Enterprise Restructuring in Transition: A Quantitative Survey,"
CEPR Discussion Papers
3319, C.E.P.R. Discussion Papers.
- Simeon Djankov & Peter Murrell, 2002. "Enterprise Restructuring in Transition: A Quantitative Survey," Journal of Economic Literature, American Economic Association, vol. 40(3), pages 739-792, September.
- Voos, Paula B & Mishel, Lawrence R, 1986. "The Union Impact on Profits in the Supermarket Industry," The Review of Economics and Statistics, MIT Press, vol. 68(3), pages 513-517, August.
- Stephen B. Jarrell & T. D. Stanley, 2004. "Declining Bias and Gender Wage Discrimination? A Meta-Regression Analysis," Journal of Human Resources, University of Wisconsin Press, vol. 39(3).
- Ruback, Richard S & Zimmerman, Martin B, 1984. "Unionization and Profitability: Evidence from the Capital Market," Journal of Political Economy, University of Chicago Press, vol. 92(6), pages 1134-1157, December.
- Chris Doucouliagos, 1995. "Worker Participation and Productivity in Labor-Managed and Participatory Capitalist Firms: A Meta-Analysis," ILR Review, Cornell University, ILR School, vol. 49(1), pages 58-77, October.
- Barry T. Hirsch & Barbara A. Morgan, 1994. "Shareholder Risk and Returns in Union and Nonunion Firms," ILR Review, Cornell University, ILR School, vol. 47(2), pages 302-318, January.
- Haskel, Jonathan & Martin, Christopher & Small, Ian, 1995. "Price, Marginal Cost and the Business Cycle," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(1), pages 25-41, February.
- Bronars, Stephen G & Deere, Donald R, 1994. "Unionization and Profitability: Evidence of Spillover Effects," Journal of Political Economy, University of Chicago Press, vol. 102(6), pages 1281-1287, December.
- Laroche, P., 2000. "What do Unions do to Productivity? A Meta-Analysis," Papers 2000-5, Groupe de recherche en économie financière et en gestion des entreprises, Universite Nancy 2.
- Frank A. Sloan & Killard W. Adamache, 1984. "The Role of Unions in Hospital Cost Inflation," ILR Review, Cornell University, ILR School, vol. 37(2), pages 252-262, January.
- Cable, J. R. & Machin, S. J., 1991. "The relationship between union wage and profitability effects," Economics Letters, Elsevier, vol. 37(3), pages 315-321, November.
- De Long, J Bradford & Lang, Kevin, 1992.
"Are All Economic Hypotheses False?,"
Journal of Political Economy,
University of Chicago Press, vol. 100(6), pages 1257-1272, December.
- T. D. Stanley, 2005. "Beyond Publication Bias," Journal of Economic Surveys, Wiley Blackwell, vol. 19(3), pages 309-345, 07.
- Barry T. Hirsch & Robert A. Connolly, 1987. "Do Unions Capture Monopoly Profits?," ILR Review, Cornell University, ILR School, vol. 41(1), pages 118-136, October.
- Patrice Laroche, 2004. "Présence syndicale et performance financière des entreprises:une analyse statistique sur le cas français," Revue Finance Contrôle Stratégie, revues.org, vol. 7(3), pages 117-145, September.
- B. Curtis Eaton, 1972. "The Worker and the Profitability of the Strike," ILR Review, Cornell University, ILR School, vol. 26(1), pages 670-679, October.
- Brian E. Becker & Craig A. Olson, 1989. "Unionization and Shareholder Interests," ILR Review, Cornell University, ILR School, vol. 42(2), pages 246-261, January.
- 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.
- Conyon, M. & Machin, S., 1991. "Market structure and the empirical specification of profit margins," Economics Letters, Elsevier, vol. 35(2), pages 227-231, February.
- Connolly, Robert A & Hirsch, Barry T & Hirschey, Mark, 1986. "Union Rent Seeking, Intangible Capital, and Market Value of the Firm," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 567-577, November.
- Steven L. Thomas & Morris M. Kleiner, 1992. "The Effect of Two-Tier Collective Bargaining Agreements on Shareholder Equity," ILR Review, Cornell University, ILR School, vol. 45(2), pages 339-351, January.
- Hirsch, Barry T., 1990. "Market structure, union rent seeking, and firm profitability," Economics Letters, Elsevier, vol. 32(1), pages 75-79, January.
- Voos, Paula B & Mishel, Lawrence R, 1986. "The Union Impact on Profits: Evidence from Industry Price-Cost Margin Data," Journal of Labor Economics, University of Chicago Press, vol. 4(1), pages 105-133, January.
- FitzRoy, Felix R & Kraft, Kornelius, 1985. "Unionization, Wages and Efficiency: Theories and Evidence from the U.S. and West Germany," Kyklos, Wiley Blackwell, vol. 38(4), pages 537-554.
- DOBSON, Steve & RAMLOGAN, Carlyn & STROBL, Eric, 2003. "Why do rates of convergence differ ? A meta-regression analysis," CORE Discussion Papers 2003020, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- FitzRoy, Felix R & Kraft, Kornelius, 1993. " Economic Effects of Codetermination," Scandinavian Journal of Economics, Wiley Blackwell, vol. 95(3), pages 365-375.
- Hirsch, Barry T, 1991. "Union Coverage and Profitability among U.S. Firms," The Review of Economics and Statistics, MIT Press, vol. 73(1), pages 69-77, February.
- McDonald, James Ted, 1999. "The Determinants of Firm Profitability in Australian Manufacturing," The Economic Record, The Economic Society of Australia, vol. 75(229), pages 115-126, June.
- Morris M. Kleiner, 2001. "Intensity of Management Resistance: Understanding the Decline of Unionization in the Private Sector," Journal of Labor Research, Transaction Publishers, vol. 22(3), pages 519-540, July.
- Stephen B. Jarrell & T. D. Stanley, 1990. "A Meta-Analysis of the Union-Nonunion Wage Gap," ILR Review, Cornell University, ILR School, vol. 44(1), pages 54-67, October.
- Dowrick, Steve, 1989. "Union-Oligopoly Bargaining," Economic Journal, Royal Economic Society, vol. 99(398), pages 1123-1142, December.
- Peter Turnbull, 2003. "What Do Unions Do Now?," Journal of Labor Research, Transaction Publishers, vol. 24(3), pages 491-527, July.
- Brian E. Becker, 1995. "Union Rents as a Source of Takeover Gains among Target Shareholders," ILR Review, Cornell University, ILR School, vol. 49(1), pages 3-19, October.
- Steven G. Allen, 1985.
"Union Work Rules and Efficiency in the Building Trades,"
NBER Working Papers
1733, National Bureau of Economic Research, Inc.
- Allen, Steven G, 1986. "Union Work Rules and Efficiency in the Building Trades," Journal of Labor Economics, University of Chicago Press, vol. 4(2), pages 212-242, April.
- FitzRoy, Felix R & Kraft, Kornelius, 1986. "Profitability and Profit-Sharing," Journal of Industrial Economics, Wiley Blackwell, vol. 35(2), pages 113-130, December.
- Karier, Thomas M, 1985. "Unions and Monopoly Profits," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 34-42, February.
- Alex Bryson & David Wilkinson, 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.
- Chris Doucouliagos & Patrice Laroche, 2002. "Unions and productivity growth: a meta-analytic review," Cahiers du CEREFIGE 0202, CEREFIGE (Centre Europeen de Recherche en Economie Financiere et Gestion des Entreprises), Universite de Lorraine, revised 2002.
- Machin, S.J., 1991. "Unions and the capture of economic rents: An investigation using british firm level data," International Journal of Industrial Organization, Elsevier, vol. 9(2), pages 261-274, June.
- James McDonald & Harry Bloch, 1999. "The Spillover Effects of Industrial Action on Firm Profitability," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 15(2), pages 183-200, September.
- Ghosal, Vivek, 1989. "Market structures, price-cost margins, and unionism : An empirical note," Economics Letters, Elsevier, vol. 29(2), pages 179-182.
When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-00648569. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.