The Effects of Labor Unions on Workplace Performance: New Evidence from France

How do unionization and collective bargaining affect firm profitability? In this paper, we revisit this question using a nationally representative sample of French establishments. In addition to examining union/non-union differences in profitability, we explore the possible sources from which unions...

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Bibliographic Details
Published inJournal of labor research Vol. 32; no. 2; pp. 157 - 180
Main Authors Laroche, Patrice, Wechtler, Heidi
Format Journal Article
LanguageEnglish
Published Boston Springer US 01.06.2011
Springer Nature B.V
Springer Verlag
Subjects
Appropriations and expenditures
Business administration
Capital
Case studies
Collective bargaining
Economic rent
Economics and Finance
Financial performance
France
Humanities and Social Sciences
Hypotheses
Investments
Labor policy
Labor unions
Labour market
Labour relations
Market shares
Productivity
Profitability
Profits
R&D
Rent
Research & development
Social Sciences
Trade unions
Unionization
Wages & salaries
Workplaces
Employment relations
Collective bargaining
Financial performance
L25
J51
Unions
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Summary:How do unionization and collective bargaining affect firm profitability? In this paper, we revisit this question using a nationally representative sample of French establishments. In addition to examining union/non-union differences in profitability, we explore the possible sources from which unions capture profits. The results indicate that unionization in France is associated with poorer financial performance in the workplace. The results also indicate that concentration-related profits do not provide an important source of union rents in France. Finally, this study provides strong support for the hypothesis of union appropriation of the returns from long-lived physical capital.
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ISSN:0195-3613
1936-4768
DOI:10.1007/s12122-011-9106-9