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Productivity and trade unions in British manufacturing industry 1973-85

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  • Kevin Denny

Abstract

This paper uses panel data on British manufacturing industries between 1973 and 1985 to examine the relationship between productivity and labour organisation. It is shown that the precise relationship between unions and productivity levels is difficult to pin down. There is some evidence of a negative relationship further as does controlling for endogeneity. We also find some evidence that industrial concentration is associated with higher levels of measured productivity.

Suggested Citation

  • Kevin Denny, 1993. "Productivity and trade unions in British manufacturing industry 1973-85," Working Papers 199310, School of Economics, University College Dublin.
    • Handle: RePEc:ucn:wpaper:199310
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    File URL: http://hdl.handle.net/10197/1714
    File Function: First version, 1993
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    References listed on IDEAS

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    1. Wadhwani, S., 1989. "The Effect Of Unions On Productivity Growth, Investment And Employment: A Report On Some Recent Work," Papers 356, London School of Economics - Centre for Labour Economics.
    2. Machin, Stephen J & Wadhwani, Sushil, 1991. "The Effects of Unions on Organisational Change and Employment," Economic Journal, Royal Economic Society, vol. 101(407), pages 835-854, July.
    3. Charles Bean & James Symons, 1989. "Ten Years of Mrs. T," NBER Chapters, in: NBER Macroeconomics Annual 1989, Volume 4, pages 13-72, National Bureau of Economic Research, Inc.
    4. Yair Mundlak, 1961. "Empirical Production Function Free of Management Bias," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 43(1), pages 44-56.
    5. Muellbauer, John, 1991. "Productivity and Competitiveness," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 7(3), pages 99-117, Autumn.
    6. Denny, Kevin & Nickell, Stephen J, 1992. "Unions and Investment in British Industry," Economic Journal, Royal Economic Society, vol. 102(413), pages 874-887, July.
    7. Machin, S.J., 1988. "The Productivity Effects Of Unionisation And Firm Size In British Engineering Firms," The Warwick Economics Research Paper Series (TWERPS) 293, University of Warwick, Department of Economics.
    8. Muellbauer, John, 1984. "Aggregate Production Functions and Productivity Measurement: A New Look," CEPR Discussion Papers 34, C.E.P.R. Discussion Papers.
    9. Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-1426, November.
    10. Nickell, S. & Komg, P., 1989. "Technical Progress And Jobs," Papers 366, London School of Economics - Centre for Labour Economics.
    11. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    12. repec:bla:econom:v:58:y:1991:i:232:p:479-90 is not listed on IDEAS
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    Citations

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    Cited by:

    1. Asteriou, Dimitrios & Monastiriotis, Vassilis, 2007. "What do unions do at the large scale? Macro-economic evidence from a panel of OECD countries," Journal of Applied Economics, Universidad del CEMA, vol. 7(1), pages 1-20, May.
    2. Zafiris TZANNATOS & Toke S. AIDT, 2006. "Unions and microeconomic performance: A look at what matters for economists (and employers)," International Labour Review, International Labour Organization, vol. 145(4), pages 257-278, December.
    3. Michail Veliziotis & Guy Vernon, 2023. "From monopoly to voice effects? British workplace unionism and productivity performance into the new millennium," British Journal of Industrial Relations, London School of Economics, vol. 61(3), pages 574-594, September.
    4. Monojit Chatterji, 2000. "Trade Union Power and Economic Efficiency," Dundee Discussion Papers in Economics 108, Economic Studies, University of Dundee.
    5. Laroche, Patrice, 2020. "Unions, Collective Bargaining and Firm Performance," GLO Discussion Paper Series 728, Global Labor Organization (GLO).
    6. Toke Skovsgaard Aidt & Vania Sena, 2005. "Unions: Rent Creators or Extractors?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 107(1), pages 103-121, March.
    7. Guy Vernon & Mark Rogers, 2013. "Where Do Unions Add Value? Predominant Organizing Principle, Union Strength and Manufacturing Productivity Growth in the OECD," British Journal of Industrial Relations, London School of Economics, vol. 51(1), pages 1-27, March.

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    More about this item

    Keywords

    Manufacturing industries--Labor productivity--Great Britain; Labor unions--Great Britain; Industrial productivity--Great Britiain;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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