Union Retreat and Regional Economic Performance: the UK in the 1990s
This paper uses a panel of regional data to investigate the impact that the well-documented decline in trade unionism in the UK had on the economic performance of its regions. The analysis employed here departs from the traditional firm-level and cross-sectional analyses and looks at the economy-wide effects of unionism. Our findings provide evidence in line with theory that predicts unions to increase wages and reduce labour demand, leading to higher unemployment, but they also indicate that unionism is positively related to productivity and incomes, although in all cases the effects are non-linear. We conclude that unionism is not necessarily a burden for the economy, so long that the beneficial wage/productivity effects overbalance the negative effects on employment.
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.:
- Ron Martin, 1997. "Regional Unemployment Disparities and their Dynamics," Regional Studies, Taylor & Francis Journals, vol. 31(3), pages 237-252.
- P.W. Miller & C. Mulvey, 1992.
"What do Australian Unions do?,"
Economics Discussion / Working Papers
92-19, The University of Western Australia, Department of Economics.
- Miller, Paul & Mulvey, Charles, 1992. "What Do Australian Unions Do?," Institute for Research on Labor and Employment, Working Paper Series qt7rk2x5x2, Institute of Industrial Relations, UC Berkeley.
- David Card, 1992. "The Effect of Unions on the Distribution of Wages: Redistribution or Relabelling?," NBER Working Papers 4195, National Bureau of Economic Research, Inc.
- Andrea Bassanini & Ekkehard Ernst, 2006.
"Labour market institutions, product market regulation and innovation: Cross-country evidence,"
- Andrea Bassanini & Ekkehard Ernst, 2002. "Labour Market Institutions, Product Market Regulation, and Innovation: Cross-Country Evidence," OECD Economics Department Working Papers 316, OECD Publishing.
- Richard B. Freeman, 1980.
"Unionism and the Dispersion of Wages,"
Cornell University, ILR School, vol. 34(1), pages 3-23, October.
- Francis Green & Stephen Machin & David Wilkinson, 1999.
"Trade Unions and Training Practices in British Workplaces,"
Cornell University, ILR School, vol. 52(2), pages 179-195, January.
- F Green & Stephen Machin & D Wilkinson, 1996. "Trade Unions and Training Practices in British Workplaces," CEP Discussion Papers dp0278, Centre for Economic Performance, LSE.
- F. Green & Stephen Machin & D. Wilkinson, 1996. "Trade unions and training practices in British workplaces," LSE Research Online Documents on Economics 20684, London School of Economics and Political Science, LSE Library.
- Nickell, Stephen & Layard, Richard, 1999.
"Labor market institutions and economic performance,"
Handbook of Labor Economics,
in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 46, pages 3029-3084
- Richard Layard & Stephen Nickell, 1998. "Labour Market Institutions and Economic Performance," CEP Discussion Papers dp0407, Centre for Economic Performance, LSE.
- Nickell, S. & Layard, R., 1997. "Labour Market Institutions and Economic Performance," Papers 23, Centre for Economic Performance & Institute of Economics.
- 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.
- Booth, Alison L & Chatterji, Monojit, 1998. "Unions and Efficient Training," Economic Journal, Royal Economic Society, vol. 108(447), pages 328-43, March.
- 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.
- Reynolds, Morgan O, 1986. "Trade Unions in the Production Process Reconsidered," Journal of Political Economy, University of Chicago Press, vol. 94(2), pages 443-47, April.
- Richard B. Freeman, 1991. "How Much Has De-Unionisation Contributed to the Rise in Male Earnings Inequality?," NBER Working Papers 3826, National Bureau of Economic Research, Inc.
- Richard B. Freeman, 1983. "Unionism, Price-Cost Margins, and the Return to Capital," NBER Working Papers 1164, National Bureau of Economic Research, Inc.
- Brown, Charles & Medoff, James, 1978. "Trade Unions in the Production Process," Journal of Political Economy, University of Chicago Press, vol. 86(3), pages 355-78, June.
- Booth, Alison L, 1991. "Job-Related Formal Training: Who Receives It and What Is It Worth?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 53(3), pages 281-94, August.
- David Metcalf, 2001. "British Unions: Dissolution or Resurgence Revisited," CEP Discussion Papers dp0493, Centre for Economic Performance, LSE.
- L. Wade, 1988. "Review," Public Choice, Springer, vol. 58(1), pages 99-100, July.
- Machin, S. & Wadhwani, S., 1989. "The Effects Of Unions On Organizational Change, Investment And Employment: Evidence From Wirs," Papers 355, London School of Economics - Centre for Labour Economics.
- Machin, Stephen J & Wadhwani, Sushil, 1991. "The Effects of Unions on Organisational Change and Employment," Economic Journal, Royal Economic Society, vol. 101(407), pages 835-54, July.
- 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.
- Blackaby, David H & Murphy, Philip D, 1991. "Industry Characteristics and Inter-regional Wage Differences," Scottish Journal of Political Economy, Scottish Economic Society, vol. 38(2), pages 142-61, May.
When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpur:0302006. 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: (EconWPA)
If references are entirely missing, you can add them using this form.