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Unionisation, Industrial Relations and Labour Productivity Growth in Australia: A Pooled Time-Series/Cross-Section Analysis of TFP Growth

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  • Phipps, A.J.
  • Sheen, J.R.

Abstract

This study examines the impact of unionisation and other industrial relations variables on total factor productivity (TFP) levels and growth in a conventional Cobb-Douglas production function. The estimation employs quarterly time-series data from 1976 to 1990 on output, employment and the capital stock for fifteen separate industries pooled with cross-sectional data on unionisation and other industrial relations characteristics derived from AWIRS. Preliminary results suggest that union density has a negative effect on the level of TFP while the number of awards had a negative effect over the sample period. However, union density has had a positive effect on TFP growth. Variables reflecting the proportion of workplaces having 'enlightened' industrial relations policies, such as profit sharing, worker share ownership and superannuation schemes appear to have been positively related to TFP levels and growth over the sample period. This evidence seems to suggest the existence of a collective 'voice' effect.

Suggested Citation

  • Phipps, A.J. & Sheen, J.R., 1993. "Unionisation, Industrial Relations and Labour Productivity Growth in Australia: A Pooled Time-Series/Cross-Section Analysis of TFP Growth," Working Papers 190, University of Sydney, School of Economics.
    • Handle: RePEc:syd:wpaper:2123/7405
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    File URL: http://hdl.handle.net/2123/7405
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    Cited by:

    1. Samantha Farmakis‐Gamboni & David Prentice, 2011. "When Does Reducing Union Bargaining Power Increase Productivity? Evidence from the Workplace Relations Act," The Economic Record, The Economic Society of Australia, vol. 87(279), pages 603-616, December.

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