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The Effects of Labor Unions on Workplace Performance: New Evidence from France

Author

Listed:
  • Patrice Laroche

    (CEREFIGE - Centre Européen de Recherche en Economie Financière et Gestion des Entreprises - UL - Université de Lorraine)

  • Heidi Wechtler

    (Sorbonne Business School - UP1 - Université Paris 1 Panthéon-Sorbonne)

Abstract

How do unionization and collective bargaining affect firm profitability? In this paper, we revisit this question using a nationally representative sample of French establishments. In addition to examining union/non-union differences in profitability, we explore the possible sources from which unions capture profits. The results indicate that unionization in France is associated with poorer financial performance in the workplace. The results also indicate that concentration-related profits do not provide an important source of union rents in France. Finally, this study provides strong support for the hypothesis of union appropriation of the returns from long- lived physical capital.

Suggested Citation

  • Patrice Laroche & Heidi Wechtler, 2011. "The Effects of Labor Unions on Workplace Performance: New Evidence from France," Post-Print hal-02138142, HAL.
    • Handle: RePEc:hal:journl:hal-02138142
    DOI: 10.1007/s12122-011-9106-9
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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).
    2. Gose, Karina & Sadrieh, Abdolkarim, 2014. "Strike, coordination, and dismissal in uniform wage settings," European Economic Review, Elsevier, vol. 70(C), pages 145-158.
    3. Niftiyev Ibrahim & David Delia & Pordea Daniela, 2025. "Non-Parametric Analysis of Retailer Performance in Selected EU Countries: Assessing The Impact of COVID-19," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 35(3), pages 39-68.

    More about this item

    JEL classification:

    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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