UNIONS AND PROFITABILITY OVER THE 1980s: SOME EVIDENCE ON UNION-FIRM BARGAINING IN THE UNITED KINGDOM*

Naércio Aquino Menezes-Filho

65 citations0/0 files storedThe Economic Journal

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Labor Movements and Unions Labor market dynamics and wage inequality Merger and Competition Analysis

Abstract

In this paper an attempt is made to assess the behaviour of the rate of return on sales of unionised firms as compared to the non‐unionised ones in the late 1980s in the United Kingdom. The main aim is to examine what has happened to the relationship between unionisation and profitability after the changes in the union legislation, competition environment and cyclical variations that took place over this period. The impact of different forms of union‐firm bargaining on the union‐profitability effect is also examined. The data reveal that the negative union effect on profitability exists, even after controlling for firm specific fixed effects, but that it has been sharply reduced over the 1980s.

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References

1991Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations 1992Unemployment: macroeconomic performance and the labour market 1990Industrial market structure and economic performance 1986The Nash Bargaining Solution in Economic Modelling 1976Price-Cost Margins and Market Structure 1986Profits in the Long Run 1984Involuntary Unemployment as a Perfect Equilibrium in a Bargaining Model 1988Worker Substitutability and Patterns of Unionisation

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