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Looking for HRM/Union Substitution: Evidence from British Workplaces

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  • Stephen Machin
  • Stephen Wood

Abstract

In this paper we test the HRM/union substitution hypothesis that human resource management (HRM) practices act as a substitute for unionization. We use British workplace data between 1980 and 1998 which allows us toexamine for the first time whether increased HRM incidence has coincided with union decline.First, we compare changes over time in the incidence of HRM practices across union and non-union sectors, finding little cross-time difference occurring between sectors. Second, we ask whether newer workplaces (strongly shown by other research as more likely to be non-union) have experienced differentiallyfaster HRM incidence; we are unable to find much evidence in support of this. Third, longitudinal changes alsofail to pick up any evidence of faster union decline in workplaces or industries with faster take up of HRMpractices. We find no evidence of HRM substitution operating in the hypothesised way of it replacing unions and conclude that increased HRM incidence does not seem to be an important factor underpinning union decline in Britain.

Suggested Citation

  • Stephen Machin & Stephen Wood, 2004. "Looking for HRM/Union Substitution: Evidence from British Workplaces," CEP Discussion Papers dp0605, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp0605
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    References listed on IDEAS

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    1. Jeremy Waddington, 1992. "Trade Union Membership in Britain, 1980–1987: Unemployment and Restructuring," British Journal of Industrial Relations, London School of Economics, vol. 30(2), pages 287-324, June.
    2. Keith Sisson, 1993. "In Search of HRM," British Journal of Industrial Relations, London School of Economics, vol. 31(2), pages 201-210, June.
    3. John H. Pencavel, 2004. "The Surprising Retreat of Union Britain," NBER Chapters, in: Seeking a Premier Economy: The Economic Effects of British Economic Reforms, 1980–2000, pages 181-232, National Bureau of Economic Research, Inc.
    4. Stephen Wood & Maria Teresa Albanese, 1995. "Can We Speak Of A High Commitment Management On The Shop Floor?," Journal of Management Studies, Wiley Blackwell, vol. 32(2), pages 215-247, March.
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    1. repec:lan:wpaper:4012 is not listed on IDEAS
    2. repec:lan:wpaper:3727 is not listed on IDEAS
    3. A I Petrescu & R Simmons & S Bradley, 2004. "The impacts of human resource management practices and pay inequality on workers' job satisfaction," Working Papers 542602, Lancaster University Management School, Economics Department.
    4. repec:lan:wpaper:3621 is not listed on IDEAS
    5. repec:lan:wpaper:3619 is not listed on IDEAS

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    More about this item

    Keywords

    Human Resource Management; Trade unions;

    JEL classification:

    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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