Working Paper: NBER ID: w2304
Authors: Steven G. Allen
Abstract: This paper examines how unions affect the rate of productivity change over time. The direction of union impact cannot be predicted from economic theory. Firms may tend to select more productive technologies to offset the cost of higher union wages or they may tend to select less productive technologies to keep union wage demands in line. Evidence from manufacturing indicates that unions have not affected productivity growth, but in the construction industry productivity growth has been much slower in areas where there is a high initial level of unionization or where unionization is growing.
Keywords: Unionism; Productivity; Labor Economics
JEL Codes: J51; L23; O33
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Unionization (J51) | Productivity Change (O49) |
| Unionization (J51) | Slower Productivity Growth in Construction (L74) |
| Changes in Unionization (J50) | Productivity Growth (O49) |
| Initial Level of Unionization (J50) | Productivity Growth (O49) |
| Unionization and Technical Change Rates (J59) | Productivity Outcomes (O49) |