Productivity, Efficiency and Strike Activity

Abstract

The economic impact of unions has received increasing attention in the literature. However, the channels through which unions impinge on performance are seldom identified. This paper examines the impact of industrial conflict on output and factor productivity in a panel of British manufacturing industries for the 1970s. Production frontiers augmented by various dimensions of strike activity are estimated and strikes are found to have a negligible net impact on output. Furthermore, while there is some weak evidence to suggest that union presence adversely affects (relative) efficiency, this effect is not derived from higher levels of strike activity.

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