The Wage Impact of Trade Unions in the UK Public and Private Sectors

Blanchflower, David G.; Bryson, Alex

doi:10.1111/j.1468-0335.2008.00726.x

Cited by 66 publications

(60 citation statements)

References 22 publications

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“…However, the negative relationship with performance is worth noting because of the lack of firm consensus in the literature. For example, whilst it is generally accepted that union wage differentials exist (Blanchflower, 1991;McKinley, 2008), and this has a significant negative impact upon profitability (Machin, Stewart and van Reenan, 1993), there is general disagreement over impacts upon investment and turnover (Denny and Nickell, 1992;Machin and Wadhwani, 1991). Moreover, the finding that non-British firms are more affected by this phenomenon than British-owned firms is perhaps surprising, given that inward investors into the UK have differing relationships with trade unions.…”

Section: Cost Wfps and Financialmentioning

confidence: 99%

Workplace Flexibility Practices and Corporate Performance: Evidence from the British Private Sector

Whyman

Baimbridge

Buraimo

et al. 2014

British J of Management

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This paper investigates the relationship between workplace flexibility practices (WFPs) and corporate performance using data from the British Workplace Employment Relations Survey 2004.Disaggregating WFPs into numerical, functional and cost aspects, enables the analysis of their relationships to an objective measure of corporate performance, namely workplace financial turnover.Furthermore separate analyses are presented for different types of workplace: differentiated by workforce size; ownership; age; wage level and unionisation. Results show that different types of workplaces need to pay attention to the mix of WFPs they adopt. We find that certain cost WFPs (profitrelated pay, merit pay and payment-by-results) have strong positive relationships with corporate performance. However, training delivers mixed corporate performance results, while the extent of job autonomy and the proportion of part-time employees in a workplace have an inverse association with corporate performance. Given the limited existing research examining disaggregated measures of WFPs and objectively measured corporate performance, this paper offers useful insights for firms, policy makers and the overall economy.

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Section: Cost Wfps and Financialmentioning

confidence: 99%

Workplace Flexibility Practices and Corporate Performance: Evidence from the British Private Sector

Whyman

Baimbridge

Buraimo

et al. 2014

British J of Management

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“…On the other hand, wages may not only reflect marginal productivity. Indeed, noncompetitive models of wage determination (including collective bargaining, rent-sharing, search and recruiting frictions, discrimination or monopsony) find some support in the empirical literature (Bayard et al, 2003, Blanchflower and Bryson, 2010, du Caju et al, 2011, Manning, 2003, Martins, 2009, Mortensen, 2003, Rusinek and Rycx, 2012. Workers with identical productive characteristics thus not necessarily receive the same wages.…”

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confidence: 99%

The impact of educational mismatch on firm productivity: Evidence from linked panel data

Kampelmann

Rycx

2012

Economics of Education Review

119

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We provide first evidence regarding the direct impact of educational mismatch on firm productivity. To do so, we rely on representative linked employer-employee panel data for Belgium covering the period 1999-2006. Controlling for simultaneity issues, time-invariant unobserved workplace characteristics, cohort effects and dynamics in the adjustment process of productivity, we find that: i) a higher level of required education exerts a significantly positive influence on firm productivity, ii) additional years of over-education (both among young and older workers) are beneficial for firm productivity, and iii) additional years of undereducation (among young workers) are detrimental for firm productivity. AbstractWe provide first evidence regarding the direct impact of educational mismatch on firm productivity. To do so, we rely on representative linked employer-employee panel data for Belgium covering the period 1999-2006. Controlling for simultaneity issues, time-invariant unobserved workplace characteristics, cohort effects and dynamics in the adjustment process of productivity, we find that: i) a higher level of required education exerts a significantly positive influence on firm productivity, ii) additional years of over-education (both among young and older workers) are beneficial for firm productivity, and iii) additional years of under-education (among young workers) are detrimental for firm productivity. JEL Classification: I21; J24

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“…Moreover, wages cannot be linked strictly to productivity in every case. That is, in non-competitive models of wage determination such as rent-sharing, collective bargaining, discrimination or monopsony models, wages do not necessarily reflect marginal productivity, and workers with similar productive characteristics are found to receive different wages (Blanchflower and Bryson 2010;Manning 2003;Mortensen 2003).…”

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confidence: 99%

Educational Mismatch and Firm Productivity: Do Skills, Technology and Uncertainty Matter?

2015

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The authors provide first evidence on whether the direct relationship between educational mismatch and firm productivity varies across working environments. Using detailed Belgian linked employer-employee panel data for 1999-2010, they find the existence of a significant, positive (negative) impact of over-(under-)education on firm productivity. Moreover, their results show that the effect of over-education on productivity is stronger among firms: (i) with a higher share of high-skilled jobs, (ii) belonging to high-tech/knowledge-intensive industries, and (iii) evolving in a more uncertain economic environment. Interaction effects between under-education and working environments are less clear-cut. However, economic uncertainty is systematically found to accentuate the detrimental effect of under-education on productivity.Keywords: Educational mismatch, productivity, linked employer-employee panel data, working environments. AbstractThe authors provide first evidence on whether the direct relationship between educational mismatch and firm productivity varies across working environments. Using detailed Belgian linked employer-employee panel data for 1999-2010, they find the existence of a significant, positive (negative) impact of over-(under-)education on firm productivity. Moreover, their results show that the effect of over-education on productivity is stronger among firms: (i) with a higher share of high-skilled jobs, (ii) belonging to high-tech/knowledge-intensive industries, and (iii) evolving in a more uncertain economic environment. Interaction effects between under-education and working environments are less clear-cut. However, economic uncertainty is systematically found to accentuate the detrimental effect of under-education on productivity.

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The Wage Impact of Trade Unions in the UK Public and Private Sectors

Cited by 66 publications

References 22 publications

Workplace Flexibility Practices and Corporate Performance: Evidence from the British Private Sector

Workplace Flexibility Practices and Corporate Performance: Evidence from the British Private Sector

The impact of educational mismatch on firm productivity: Evidence from linked panel data

Educational Mismatch and Firm Productivity: Do Skills, Technology and Uncertainty Matter?

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