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The Productivity Effects of Unionization and Firm Size in British Engineering Firms

S. J. Machin
Economica
New Series, Vol. 58, No. 232 (Nov., 1991), pp. 479-490
DOI: 10.2307/2554693
Stable URL: http://www.jstor.org/stable/2554693
Page Count: 12
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The Productivity Effects of Unionization and Firm Size in British Engineering Firms
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Abstract

This paper considers the relationship between union presence and labour productivity in a sample of British engineering firms. Rather than use a single indicator of union presence to determine union effects, several indicators of union presence are combined to form an index of union presence. Average union non-union effects on labour productivity estimated using this measure, or using a dummy variable indicating the presence of closed-shop arrangements, are found to be statistically insignificant. However, there is some variation around this average, and the union impact on value added per employee is found to depend significantly on firm size, the estimated effects being more negative in larger firms.

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