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The Effects of Labor Unions on Workplace Performance: New Evidence from France

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  • Patrice Laroche
  • Heidi Wechtler

Abstract

How do unionization and collective bargaining affect firm profitability? In this paper, we revisit this question using a nationally representative sample of French establishments. In addition to examining union/non-union differences in profitability, we explore the possible sources from which unions capture profits. The results indicate that unionization in France is associated with poorer financial performance in the workplace. The results also indicate that concentration-related profits do not provide an important source of union rents in France. Finally, this study provides strong support for the hypothesis of union appropriation of the returns from long- lived physical capital.
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  • Patrice Laroche & Heidi Wechtler, 2011. "The Effects of Labor Unions on Workplace Performance: New Evidence from France," Journal of Labor Research, Springer, vol. 32(2), pages 157-180, June.
    • Handle: RePEc:spr:jlabre:v:32:y:2011:i:2:p:157-180
    DOI: 10.1007/s12122-011-9106-9
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    Cited by:

    1. Gose, Karina & Sadrieh, Abdolkarim, 2014. "Strike, coordination, and dismissal in uniform wage settings," European Economic Review, Elsevier, vol. 70(C), pages 145-158.
    2. Laroche, Patrice, 2020. "Unions, Collective Bargaining and Firm Performance," GLO Discussion Paper Series 728, Global Labor Organization (GLO).

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    More about this item

    Keywords

    Unions; Collective bargaining; Employment relations; Financial performance; J51; L25;
    All these keywords.

    JEL classification:

    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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