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The Productivity Effects Of Unionisation And Firm Size In British Engineering Firms

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  • MACHIN, S.J.

Abstract

This paper considers the relationship between unions and labour productivity in a sample of British engineering firms. Rather than use a single indicator of union presence to determine the union effect a number of measures of unionisation are combined to form a union presence index. An average union non-union productivity differential calculated using this measure is found to be statistically insignificant although there is considerable variation around this average displayed by the firms in the sample. Finn size is also found to be a key determinant of the union impact on productivity and fines with more than 1000 employees are characterised by negative statistically significant union effects. On the other hand, in smaller firms die union impact is neutral although not very well detennined. 77►e results using the index are contrasted with the effects of the closed shop on labour productivity where firm size is also found to be important such that neutral effects occur in small firms but in larger firms the closed shop is associated with lower levels of value added per employee.
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Suggested Citation

  • 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.
    • Handle: RePEc:wrk:warwec:293
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    Cited by:

    1. Kevin Denny, 1997. "Productivity and trade unions in British manufacturing industry 1973-85," Applied Economics, Taylor & Francis Journals, vol. 29(10), pages 1403-1409.
    2. Salvador Barrios & Sophia Dimelis & Helen Louri & Eric Strobl, 2004. "Efficiency spillovers from foreign direct investment in the EU periphery: A comparative study of Greece, Ireland, and Spain," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 140(4), pages 688-705, December.
    3. Addison, John T. & Siebert, W. Stanley, 2002. "Changes in Collective Bargaining in the U.K," IZA Discussion Papers 562, Institute of Labor Economics (IZA).
    4. Addison, John T. & Belfield, Clive R., 2002. "Unions and Establishment Performance: Evidence from the British Workplace Industrial/Employee Relations Surveys," IZA Discussion Papers 455, Institute of Labor Economics (IZA).
    5. Melanie K. Jones & Richard J. Jones & Paul L. Latreille & Peter J. Sloane, 2009. "Training, Job Satisfaction, and Workplace Performance in Britain: Evidence from WERS 2004," LABOUR, CEIS, vol. 23(s1), pages 139-175, March.
    6. David Metcalf, 1993. "Transformation of British Industrial Relations? Institutions, Conduct and Outcomes 1980-1990," CEP Discussion Papers dp0151, Centre for Economic Performance, LSE.
    7. Gupta, Bishnupriya, 2006. "Unions, Wages and Labour Productivity: Evidence from Indian Cotton Mills," Economic Research Papers 269646, University of Warwick - Department of Economics.
    8. Paul Gregg & Anthony Yates, 1991. "Changes in Wage-setting Arrangements and Trade Union Presence in the 1980s," British Journal of Industrial Relations, London School of Economics, vol. 29(3), pages 361-376, September.

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