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The Productivity Effects of Unionization and Firm Size in British Engineering Firms

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  • Machin, Stephen J

Abstract

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.

Suggested Citation

  • Machin, Stephen J, 1991. "The Productivity Effects of Unionization and Firm Size in British Engineering Firms," Economica, London School of Economics and Political Science, vol. 58(232), pages 479-490, November.
    • Handle: RePEc:bla:econom:v:58:y:1991:i:232:p:479-90
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    Cited by:

    1. Kevin Denny, 1997. "Productivity and trade unions in British manufacturing industry 1973-85," Applied Economics, Taylor & Francis Journals, vol. 29(10), pages 1403-1409.
    2. Melanie K. Jones & Richard J. Jones & Paul L. Latreille & Peter J. Sloane, 2009. "Training, Job Satisfaction, and Workplace Performance in Britain: Evidence from WERS 2004," LABOUR, CEIS, vol. 23(s1), pages 139-175, March.
    3. Salvador Barrios & Sophia Dimelis & Helen Louri & Eric Strobl, 2004. "Efficiency spillovers from foreign direct investment in the EU periphery: A comparative study of Greece, Ireland, and Spain," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 140(4), pages 688-705, December.
    4. Metcalf, David, 1993. "Transformation of British industrial relations? Institutions, conduct and outcomes 1980-1990," LSE Research Online Documents on Economics 20981, London School of Economics and Political Science, LSE Library.
    5. Gupta, Bishnupriya, 2006. "Unions, Wages and Labour Productivity : Evidence from Indian Cotton Mills," The Warwick Economics Research Paper Series (TWERPS) 753, University of Warwick, Department of Economics.
    6. Addison, John T. & Siebert, W. Stanley, 2002. "Changes in Collective Bargaining in the U.K," IZA Discussion Papers 562, Institute of Labor Economics (IZA).
    7. Stephen Machin, 1995. "Plant Closures and Unionization in British Establishments," British Journal of Industrial Relations, London School of Economics, vol. 33(1), pages 55-68, March.
    8. Addison, John T. & Belfield, Clive R., 2002. "Unions and Establishment Performance: Evidence from the British Workplace Industrial/Employee Relations Surveys," IZA Discussion Papers 455, Institute of Labor Economics (IZA).
    9. K. G. Knight & Paul L. Latreille, 1996. "Apprenticeship Training and Day Release in UK Engineering: Some Cross-sectional Evidence," British Journal of Industrial Relations, London School of Economics, vol. 34(2), pages 307-314, June.
    10. A. P. Dickerson & P. A. Geroski & K. G. Knight, 1997. "Productivity, Efficiency and Strike Activity," International Review of Applied Economics, Taylor & Francis Journals, vol. 11(1), pages 119-134.

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