Unions And Investment In British Industry
This paper presents an empirical analysis of investment in British industry using data at the industry level and focusing on union effects. The authors find that the rate of investment is around 28 percent lower in firms that recognize unions and have an average union density relative to those in which unions are not recognized. This is the gross effect, holding wages, product prices, and productivity constant. If we take account of union effects on these as well, the overall effect is an investment reduction of 16 percent in competitive firms and 3 percent in noncompetitive firms. Copyright 1992 by Royal Economic Society.
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