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Does Unionization Rate Matter for Labor Productivity Level: Panel Evidence

Year 2016, , 153 - 172, 18.12.2016
https://doi.org/10.17153/oguiibf.272945

Abstract





This
study investigates the effect of unionization rate on labor productivity by
using thirteen distinct labor productivity indicators. The data used in the
analyses is unbalanced data covers the periods between 2000 and 2013 for
fifty one countries. There are two opposite empirical findings on the issue
in the literature. While some of the studies find negative association
between unionization and productivity, the others find positive association
between unionization and productivity. Hence the impact of unionization on
productivity is ambiguous. The main finding of the study reveals a strong and
statistically significant negative association between unionization rate and
labor productivity and this finding remains valid in all models. Hence we may
conclude that countries with higher unionization rate face lower labor
productivity level.


References

  • Addison, J. and B. Hirsch (1989), “Union Effects on Productivity, Profits, and Growth: Has the Long Run arrived?” Journal of Labour Economics 7(1), 72-105.
  • Alesina, A. and D.Rodrik (1994), “Distributive Politics and Economic Growth”, Quarterly Journal of Economics, 109(2), 465-490.
  • Asteirou, D. and V. Monastiriotis (2004), “What Do Unions Do At The Large Scale? Macro-Economic Evidence From A Panel Of OECD Countries”, Journal of Applied Economics, 7(1), May, 27-46.
  • Auer, P., J. Berg and I. Coulibaly (2005), “Is a Stable Workforce Good for Productivity?” International Labour Review, 144(3), 319-343.
  • Autor, D. H., W. R. Kerr, and A. D. Kugler (2007), “Does Employment Protection Reduce Productivity? Evidence From US States” The Economic Journal, 117(521), F189-F217.
  • Black, S. and L. Lynch (2001), “How to Compete: The Impact of Workplace Practices and Information Technology on Productivity”, Review of Economics and Statistics 83 (August), 434–445.
  • Borjas, G. J. (2013), Labor Economics, New York: McGraw-Hill.
  • Chezum, B. and J. Garen (1998),”Are Union Productivity Effects Overestimated? Evidence form Coal Mining”, Applied Economics 30(7), 913-918.
  • Clark, K. (1979), Unionization And Productivity: Micro-Econometric Evidence, NBER Working Paper Series, No: 330, Cambridge.
  • Clark, K. (1980), “The Impact of Unionization on Productivity: A Case Study,” Industrial and Labor Relations Review, 33, 451-469.
  • Clark, K. (1984), “Unionization and Firm Performance: The Impact on Profits, Growth and Productivity”, American Economic Review 74 (5), 893-919.
  • Dahl, R. A. (1985). A Preface to Economic Democracy, Berkeley: University of California Press.
  • DeFina R. (1983), “Unions, Relative Wages and Economic Efficiency”, Journal of Labor Economics, 1(4), 408-429.
  • Denny, K. (1997), “Productivity and Trade Unions in British Manufacturing Industry”, Applied Economics, 29(10), 1403-1409.
  • Doucouliagos C. and P. Laroche (2003), “Unions And Productivity Growth: A Meta-Analytic Review”, (in Takao Kato ed.) Advances in the Economic Analysis of Participatory & Labor-Managed Firms, 07 Emerald Group Publishing Limited, 57-82.
  • Doucouliagos, C. and P. Laroche (2013), “Unions And Innovation: New Insights From The Cross-Country Evidence”. Industrial Relations, 52(2), 467-491.
  • Doucouliagos, C. and P. Laroche (2016), “The Effect of Unions on Labor Productivity: A Meta-Analytic Review”, (n.d.), Retrieved, January 20, from http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.551.4927&rep=rep1&type=pdf
  • Ehrenberg, R. G. and R. S. Smith (2012). Modern Labor Economics: Theory and Public Policy, New York: Prentice Hall.
  • Felix, R. and A. E. Thum (2013), “Intangible Capital and Labor Productivity Growth: Panel Evidence For The EU From 1998-2005”,. Review of Income & Wealth, 59(3), 486-508.
  • Filippetti, A. and A. Peyrache (2013), “Is The Convergence Party Over? Labour Productivity and The Technology Gap in Europe”, Journal of Common Market Studies, 51(6), 1006-1022.
  • Freeman, R.B. and J.L. Medoff (1979), “The Two Faces of Unionism”, Public Interest, Fall, 69-93.
  • Freeman, R.B. and J.L. Medoff (1983), Trade Unions and Productivity: Some New Evidence on an Old Issue, NBER Working Paper Series, No:1249, Cambridge.
  • Freeman, R.B. and J.L. Medoff (1984), What Do Unions Do?, New York: Basic Books.
  • Hayter, S. and V. Stoevska (2011), Social Dialogue Indicators, International Statistical Inquiry 2008-09 Technical Brief, Geneva: International Labour Office.
  • Hirsch, B. T. (1991), "Introduction", In Labor Unions and the Economic Performance of Firms, Kalamazoo, MI: W.E. Upjohn Institute for Employment Research, 1-6.
  • Hirsch, B. T. (1997), "Unionization and Economic Performance: Evidence on Productivity, Profits, Investment, and Growth”, (in Fazil Mihlar, Ed.) Unions and Right-to-Work Laws, Vancouver, British Columbia Canada: The Fraser Institute, 35-70.
  • ILO (2016), www. ilo.org, (Er.Tar.: 20 Ocak).
  • Kumar, S., D. J. Webber and G. Perry (2012), “Real Wages, Inflation And Labour Productivity in Australia”, Applied Economics, 44(23), 2945-2954.
  • Lovell, C., R. Sickles and R. Warren Jr. (1988), “The Effects of Unionization on Labor Productivity: Some Additional Evidence”, Journal of Labor Research, 9, 55-63.
  • Lu, Y., Z. Tao and Y. Wang (2010), “Union Effects on Performance and Employment Relations: Evidence from China”, China Economic Review, 21(1), 202-210.
  • Metcalf, D. (1990), “Union Presence and Labour Productivity in British Manufacturing Industry. A Reply to Nolan and Marginson”, British Journal of Industrial Relations, 28(2), 249–266.
  • Metcalf, D. (2002), Unions and Productivity, Financial Performance and Investment: International Evidence, (June), London: Centre for Economic Performance.
  • Morikawa, M. (2008), What Do Japanese Unions Do for Productivity?: An Empirical Analysis Using Firm-Level Data, RIETI Discussion Paper Series 08-E-027.
  • Mueller, S. (2012), “Works Councils and Establishment Productivity”, Industrial & Labor Relations Review, 65(4), 880-898.
  • Nickell, S. and R. Layard (1999), “Labor Market Institutions and Economic Performance”, Handbook of Labor Economics, 3, Part C, 3029-3084.
  • OECD (1995), Trade and Labor Standards: A Review of the Issues, OECD, Paris.
  • OECD (1997), “Economic Performance and the Structure of Collective Bargaining”, Employment Outlook, OECD, Paris.
  • Pantuosco, L.J. and W. Seyfried (2008), “The Effect Of Public And Private Unions On State Economic Activity: Evaluating The Benefits To Organized Workers, Policymakers, And Companies”, Journal of Business & Economics Research, February, 6(2), 27-40.
  • Piero, M. (2013), “The Drivers of Productivity”, Annals of The University of Oradea, Economic Science Series, 22(2), 253-262.
  • Radulescu, R. and M. Robson (2008), “Trade Unions, Wage Bargaining Coordination and Foreign Direct Investment”, Labour, 22(4), 661-678.
  • Rios-Avila, F. (2014), Unions and Economic Performance in Developing Countries: Case Studies from Latin America, New York: Levy Economics Institute of Bard College, Working Paper No. 787.
  • Turnbull, P.J. (1991), “Trade Unions and Productivity, Opening the Harvard “Black Boxes””, Journal of Labor Research, 12(2), Spring, 135-150.

Sendikalaşma Oranı İşgücü Verimliliği İçin Önemli midir?: Panel Kanıt

Year 2016, , 153 - 172, 18.12.2016
https://doi.org/10.17153/oguiibf.272945

Abstract





Bu çalışma on üç farklı işgücü verimlilik
göstergesini kullanarak sendikalaşma oranının işgücü verimliliği üzerindeki
etkisini incelemektedir. Analizlerde kullanılan veri seti dengesiz panel veri
olup 2000-2013 yılları arası ve elli bir ülke içindir. Literatürde konu
hakkında iki zıt ampirik bulguya rastlanmaktadır. Çalışmalardan bazıları
sendikalaşma ile verimlilik arasında negatif ilişki tespit ediyor iken
diğerleri pozitif ilişki bulmaktadır. Bundan ötürü sendikalaşmanın verimlilik
üzerindeki etkisinin yönü belirsizdir. Çalışmanın ana bulgusu sendikalaşma
oranı ile işgücü verimliliği arasında kuvvetli ve istatistiksel olarak
anlamlı negatif bir ilişkinin olduğunu ortaya koymaktadır. Bundan dolayı daha
yüksek sendikalaşma oranına sahip ülkelerin daha düşük işgücü verimlilik
düzeyi ile karşı karşıya kaldığı sonucunu çıkarabiliriz.    


References

  • Addison, J. and B. Hirsch (1989), “Union Effects on Productivity, Profits, and Growth: Has the Long Run arrived?” Journal of Labour Economics 7(1), 72-105.
  • Alesina, A. and D.Rodrik (1994), “Distributive Politics and Economic Growth”, Quarterly Journal of Economics, 109(2), 465-490.
  • Asteirou, D. and V. Monastiriotis (2004), “What Do Unions Do At The Large Scale? Macro-Economic Evidence From A Panel Of OECD Countries”, Journal of Applied Economics, 7(1), May, 27-46.
  • Auer, P., J. Berg and I. Coulibaly (2005), “Is a Stable Workforce Good for Productivity?” International Labour Review, 144(3), 319-343.
  • Autor, D. H., W. R. Kerr, and A. D. Kugler (2007), “Does Employment Protection Reduce Productivity? Evidence From US States” The Economic Journal, 117(521), F189-F217.
  • Black, S. and L. Lynch (2001), “How to Compete: The Impact of Workplace Practices and Information Technology on Productivity”, Review of Economics and Statistics 83 (August), 434–445.
  • Borjas, G. J. (2013), Labor Economics, New York: McGraw-Hill.
  • Chezum, B. and J. Garen (1998),”Are Union Productivity Effects Overestimated? Evidence form Coal Mining”, Applied Economics 30(7), 913-918.
  • Clark, K. (1979), Unionization And Productivity: Micro-Econometric Evidence, NBER Working Paper Series, No: 330, Cambridge.
  • Clark, K. (1980), “The Impact of Unionization on Productivity: A Case Study,” Industrial and Labor Relations Review, 33, 451-469.
  • Clark, K. (1984), “Unionization and Firm Performance: The Impact on Profits, Growth and Productivity”, American Economic Review 74 (5), 893-919.
  • Dahl, R. A. (1985). A Preface to Economic Democracy, Berkeley: University of California Press.
  • DeFina R. (1983), “Unions, Relative Wages and Economic Efficiency”, Journal of Labor Economics, 1(4), 408-429.
  • Denny, K. (1997), “Productivity and Trade Unions in British Manufacturing Industry”, Applied Economics, 29(10), 1403-1409.
  • Doucouliagos C. and P. Laroche (2003), “Unions And Productivity Growth: A Meta-Analytic Review”, (in Takao Kato ed.) Advances in the Economic Analysis of Participatory & Labor-Managed Firms, 07 Emerald Group Publishing Limited, 57-82.
  • Doucouliagos, C. and P. Laroche (2013), “Unions And Innovation: New Insights From The Cross-Country Evidence”. Industrial Relations, 52(2), 467-491.
  • Doucouliagos, C. and P. Laroche (2016), “The Effect of Unions on Labor Productivity: A Meta-Analytic Review”, (n.d.), Retrieved, January 20, from http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.551.4927&rep=rep1&type=pdf
  • Ehrenberg, R. G. and R. S. Smith (2012). Modern Labor Economics: Theory and Public Policy, New York: Prentice Hall.
  • Felix, R. and A. E. Thum (2013), “Intangible Capital and Labor Productivity Growth: Panel Evidence For The EU From 1998-2005”,. Review of Income & Wealth, 59(3), 486-508.
  • Filippetti, A. and A. Peyrache (2013), “Is The Convergence Party Over? Labour Productivity and The Technology Gap in Europe”, Journal of Common Market Studies, 51(6), 1006-1022.
  • Freeman, R.B. and J.L. Medoff (1979), “The Two Faces of Unionism”, Public Interest, Fall, 69-93.
  • Freeman, R.B. and J.L. Medoff (1983), Trade Unions and Productivity: Some New Evidence on an Old Issue, NBER Working Paper Series, No:1249, Cambridge.
  • Freeman, R.B. and J.L. Medoff (1984), What Do Unions Do?, New York: Basic Books.
  • Hayter, S. and V. Stoevska (2011), Social Dialogue Indicators, International Statistical Inquiry 2008-09 Technical Brief, Geneva: International Labour Office.
  • Hirsch, B. T. (1991), "Introduction", In Labor Unions and the Economic Performance of Firms, Kalamazoo, MI: W.E. Upjohn Institute for Employment Research, 1-6.
  • Hirsch, B. T. (1997), "Unionization and Economic Performance: Evidence on Productivity, Profits, Investment, and Growth”, (in Fazil Mihlar, Ed.) Unions and Right-to-Work Laws, Vancouver, British Columbia Canada: The Fraser Institute, 35-70.
  • ILO (2016), www. ilo.org, (Er.Tar.: 20 Ocak).
  • Kumar, S., D. J. Webber and G. Perry (2012), “Real Wages, Inflation And Labour Productivity in Australia”, Applied Economics, 44(23), 2945-2954.
  • Lovell, C., R. Sickles and R. Warren Jr. (1988), “The Effects of Unionization on Labor Productivity: Some Additional Evidence”, Journal of Labor Research, 9, 55-63.
  • Lu, Y., Z. Tao and Y. Wang (2010), “Union Effects on Performance and Employment Relations: Evidence from China”, China Economic Review, 21(1), 202-210.
  • Metcalf, D. (1990), “Union Presence and Labour Productivity in British Manufacturing Industry. A Reply to Nolan and Marginson”, British Journal of Industrial Relations, 28(2), 249–266.
  • Metcalf, D. (2002), Unions and Productivity, Financial Performance and Investment: International Evidence, (June), London: Centre for Economic Performance.
  • Morikawa, M. (2008), What Do Japanese Unions Do for Productivity?: An Empirical Analysis Using Firm-Level Data, RIETI Discussion Paper Series 08-E-027.
  • Mueller, S. (2012), “Works Councils and Establishment Productivity”, Industrial & Labor Relations Review, 65(4), 880-898.
  • Nickell, S. and R. Layard (1999), “Labor Market Institutions and Economic Performance”, Handbook of Labor Economics, 3, Part C, 3029-3084.
  • OECD (1995), Trade and Labor Standards: A Review of the Issues, OECD, Paris.
  • OECD (1997), “Economic Performance and the Structure of Collective Bargaining”, Employment Outlook, OECD, Paris.
  • Pantuosco, L.J. and W. Seyfried (2008), “The Effect Of Public And Private Unions On State Economic Activity: Evaluating The Benefits To Organized Workers, Policymakers, And Companies”, Journal of Business & Economics Research, February, 6(2), 27-40.
  • Piero, M. (2013), “The Drivers of Productivity”, Annals of The University of Oradea, Economic Science Series, 22(2), 253-262.
  • Radulescu, R. and M. Robson (2008), “Trade Unions, Wage Bargaining Coordination and Foreign Direct Investment”, Labour, 22(4), 661-678.
  • Rios-Avila, F. (2014), Unions and Economic Performance in Developing Countries: Case Studies from Latin America, New York: Levy Economics Institute of Bard College, Working Paper No. 787.
  • Turnbull, P.J. (1991), “Trade Unions and Productivity, Opening the Harvard “Black Boxes””, Journal of Labor Research, 12(2), Spring, 135-150.
There are 42 citations in total.

Details

Journal Section Articles
Authors

Cüneyt Koyuncu

İsmail Hakkı İşcan

Publication Date December 18, 2016
Submission Date December 5, 2016
Published in Issue Year 2016

Cite

APA Koyuncu, C., & İşcan, İ. H. (2016). Sendikalaşma Oranı İşgücü Verimliliği İçin Önemli midir?: Panel Kanıt. Eskişehir Osmangazi Üniversitesi İktisadi Ve İdari Bilimler Dergisi, 11(3), 153-172. https://doi.org/10.17153/oguiibf.272945