DO UNIONS IMPACT EFFICIENCY?: EVIDENCE FROM THE U.S. MANUFACTURING SECTOR

Pandej Chintrakarn · Yiyi Chen

6 citations0/0 files storedContemporary Economic Policy

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Labor Movements and Unions Labor market dynamics and wage inequality Efficiency Analysis Using DEA

Abstract

This study investigates the impact of labor unions on productivity and technical inefficiency of the U.S. manufacturing sector, using state-level panel data on 48 states from 1983 to 1996. The results indicate that while labor unions reduce firms' technical progress, they improve firm efficiency in utilizing the existing technology. The findings also suggest that the decline of unionization rate in the sample period impaired firms' technical efficiency by 2.4 percentage points. (JEL C33, C51, O51, J51)

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