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Unions and the Economic Performance of Brazilian Establishments

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  • Menezes-Filho, Naercio Aquino
  • Zylberstajn, Helio
  • Chahad, Jose Paulo
  • Pazello, Elaine

Abstract

Using a pooled sample, this paper indicates that unions seem to affect the economic performance of Brazilian establishments, especially in terms of profitability, employment and productivity. Unions tend to reduce profitability, whereas the relationship between union density and productivity, employment and average wages seems to be concave. These performance indicators first rise with union density up to a certain density level (usually about 50 percent) and then start to decline. These results indicate that some unionism may be good for the plants' economic performance, although too much unionism may start having negative effects.

Suggested Citation

  • Menezes-Filho, Naercio Aquino & Zylberstajn, Helio & Chahad, Jose Paulo & Pazello, Elaine, 2002. "Unions and the Economic Performance of Brazilian Establishments," IDB Publications (Working Papers) 3280, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:3280
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    References listed on IDEAS

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    9. Menezes-Filho, Naercio Aquino, 1997. "Unions and Profitability over the 1980s: Some Evidence on Union-Firm Bargaining in the United Kingdom," Economic Journal, Royal Economic Society, vol. 107(442), pages 651-670, May.
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    Cited by:

    1. Richard B. Freeman, 2009. "Labor Regulations, Unions, and Social Protection in Developing Countries: Market distortions or Efficient Institutions?," NBER Working Papers 14789, National Bureau of Economic Research, Inc.
    2. Cornel Ban, 2013. "Brazil's liberal neo-developmentalism: New paradigm or edited orthodoxy?," Review of International Political Economy, Taylor & Francis Journals, vol. 20(2), pages 298-331, April.
    3. repec:ilo:ilowps:433276 is not listed on IDEAS
    4. Pierre, Gaelle & Scarpetta, Stefano, 2004. "Employment regulations through the eyes of employers - do they matter and how do firms respond to them?," Policy Research Working Paper Series 3463, The World Bank.
    5. Pierre, Gaelle & Scarpetta, Stefano, 2007. "How labor market policies can combine workers'protection with job creation : a partial review of some key issues and policy options," Social Protection Discussion Papers and Notes 41439, The World Bank.
    6. Van Reenen, John & Menezes-Filho, Naercio, 2003. "Unions and Innovation: A Survey of the Theory and Empirical Evidence," CEPR Discussion Papers 3792, C.E.P.R. Discussion Papers.

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