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Unions and Investment in British Manufacturing Industry
Author(s) -
Denny Kevin,
Nickell Stephen
Publication year - 1991
Publication title -
british journal of industrial relations
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.665
H-Index - 70
eISSN - 1467-8543
pISSN - 0007-1080
DOI - 10.1111/j.1467-8543.1991.tb00231.x
Subject(s) - ceteris paribus , competition (biology) , productivity , investment (military) , manufacturing , labour economics , product (mathematics) , manufacturing sector , business , product market , economics , union density , market economy , industrial organization , microeconomics , macroeconomics , marketing , collective bargaining , political science , law , ecology , geometry , mathematics , incentive , biology , politics
This paper is concerned with the impact of unions on the investment rate in British industry. On the basis of an analysis of some 72 industries in the manufacturing sector, we find that, ceteris paribus, firms that recognize manual unions and have an average level of union density invest some 23 per cent less than firms that do not recognize unions. However, once we allow for union effects on wages and productivity, this overall effect is reduced to between 4 and 13 per cent, depending on the degree of competition in the product market.