Unions and Plant Closings in Britain: New Evidence from the 1990/98 WERS
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 British work using information from the earlier workplace surveys, we find a robust positive association between two measures of unionism - union recognition for collective bargaining purposes and union coverage - and plant closings. This association survives the incorporation of very detailed industry controls but is driven by plants that are parts of multi-establishment enterprises. There appears to be little or no statistically significant association for 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.
|Date of creation:||Aug 2001|
|Date of revision:|
|Publication status:||published in: Southern Economic Journal, 2003, 69 (4), 822-841|
|Contact details of provider:|| Postal: |
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
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.:
- Machin, Stephen & Stewart, Mark, 1996.
"Trade Unions and Financial Performance,"
Oxford Economic Papers,
Oxford University Press, vol. 48(2), pages 213-41, April.
- Dunne, T. & Roberts, M.J., 1990. "Wages And The Risk Of Plant Closing," Papers 6-90-2, Pennsylvania State - Department of Economics.
- Karier, Thomas M, 1985. "Unions and Monopoly Profits," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 34-42, February.
- Manning, Alan, 1993.
"Pre-strike Ballots and Wage-Employment Bargaining,"
Oxford Economic Papers,
Oxford University Press, vol. 45(3), pages 422-39, July.
- Disney, Richard & Gosling, Amanda & Machin, Stephen, 1996.
"What Has Happened to Union Recognition in Britain?,"
London School of Economics and Political Science, vol. 63(249), pages 1-18, February.
- R Disney & A Gosling & Stephen Machin, 1993. "What has Happened to Union Recognition in Britain?," CEP Discussion Papers dp0130, Centre for Economic Performance, LSE.
- Fallick, Bruce C & Hassett, Kevin A, 1999.
"Investment and Union Certification,"
Journal of Labor Economics,
University of Chicago Press, vol. 17(3), pages 570-82, July.
- Grout, Paul A, 1984. "Investment and Wages in the Absence of Binding Contracts: A Nash Bargining Approach," Econometrica, Econometric Society, vol. 52(2), pages 449-60, March.
- Denny, Kevin & Nickell, Stephen J, 1992.
"Unions and Investment in British Industry,"
Royal Economic Society, vol. 102(413), pages 874-87, July.
- Barry T. Hirsch, 1991. "Labor Unions and the Economic Performance of Unions," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number luepf, March.
- Addison, John T & Chilton, John B, 1998. "Self-Enforcing Union Contracts: Efficient Investment and Employment," The Journal of Business, University of Chicago Press, vol. 71(3), pages 349-69, July.
- Macpherson, D.A. & Dunne, T., 1992. "Unionism and Gross Employment Flows," Working Papers 1992_10_5, Department of Economics, Florida State University.
- Kuhn, Peter, 1986. "Wages, Effort, and Incentive Compatibility in Life-Cycle Employment Contracts," Journal of Labor Economics, University of Chicago Press, vol. 4(1), pages 28-49, January.
- Naercio Menezes-Filho & David Ulph & John Van Reenen, 1998. "R&D and unionism: Comparative evidence from British companies and establishments," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 52(1), pages 45-63, October.
- Curme, Michael & Kahn, Lawrence M, 1990. "The Impact of the Threat of Bankruptcy on the Structure of Compensation," Journal of Labor Economics, University of Chicago Press, vol. 8(4), pages 419-47, October.
- Menezes-Filho, Naercio & Ulph, David & Van Reenen, John, 1998. "The determination of R&D: Empirical evidence on the role of unions," European Economic Review, Elsevier, vol. 42(3-5), pages 919-930, May.
- Edward P. Lazear, 1981.
"A Competitive Theory of Monopoly Unionism,"
NBER Working Papers
0672, National Bureau of Economic Research, Inc.
- 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.
- Blanchflower, David G & Millward, Neil & Oswald, Andrew J, 1991. "Unionism and Employment Behaviour," Economic Journal, Royal Economic Society, vol. 101(407), pages 815-34, July.
- Richard B. Freeman & Morris M. Kleiner, 1999.
"Do unions make enterprises insolvent?,"
Industrial and Labor Relations Review,
ILR Review, Cornell University, ILR School, vol. 52(4), pages 510-527, July.
- David Metcalf, 1993. "Industrial Relations and Economic Performance," CEP Discussion Papers dp0129, Centre for Economic Performance, LSE.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp352. 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: (Mark Fallak)
If references are entirely missing, you can add them using this form.