The Productivity Effects Of Unionisation And Firm Size In British Engineering Firms
This paper considers the relationship between union presence and labor productivity in a sample of British engineering firms. Rather than use a single indicator of union presence to determine union effects, several indicators of union presence are combined to form an index of union presence. Average union non-union effects on labor productivity estimated using this measure, or using a dummy variable indicating the presence of closed-shop arrangements, are found to be statistically insignificant. However, there is some variation around this average, and the union impact on value added per employee is found to depend significantly on firm size, the estimated effects being more negative in larger firms. Copyright 1991 by The London School of Economics and Political Science.
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