Working Paper: NBER ID: w1368
Authors: Casey Ichniowski
Abstract: This study documents a strong inverse relationship between number of pages of labor contracts in effect and the productivity observed in a sample of ten unionized plants. It is argued that this relationship reflects the productivity-inhibiting effects of increases in the number and complexity of work rules. The study also argues that subsequent research should try to improve the measurement of work rules by considering the substance of the rules and which parameters of a production function the rules are likely to affect.
Keywords: productivity; labor contracts; unionization; work rules
JEL Codes: J53; J41
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| number of pages in labor contracts (J52) | productivity (O49) |
| contract negotiations (J52) | productivity (O49) |
| installation of new machinery (L64) | productivity (O49) |
| absence of formalized work rules (J46) | productivity (O49) |