scholarly journals Union Density Effects on Productivity and Wages

2020 ◽  
Vol 130 (631) ◽  
pp. 1898-1936
Author(s):  
Erling Barth ◽  
Alex Bryson ◽  
Harald Dale-Olsen
Keyword(s):  
Union Membership ◽  
Union Density ◽  
Selection Effects ◽  
Firm Level ◽  
Taxable Income ◽  
Wage Effect ◽  
Density Effects ◽  
Tax Subsidies ◽  
Rent Sharing ◽  
Over Time

Abstract We exploit changes in tax subsidies for union members in Norway to identify the effects of changes in firm-level union density on productivity and wages. Increased deductions in taxable income for union members led to higher membership rates and contributed to a lower decline in union membership rates over time in Norway. Accounting for selection effects and the potential endogeneity of unionisation, the results show that increasing union density at the firm level leads to a substantial increase in both productivity and wages. The wage effect is larger in more productive firms, consistent with rent-sharing models.

The declining influence of class and ideology in union membership: Consistent but divergent trends among Swedish employees

2017 ◽  
Vol 41 (2) ◽  
pp. 351-371 ◽  
Author(s):  
Johanna Palm
Keyword(s):  
Time Series ◽  
Empirical Analysis ◽  
Union Membership ◽  
Time Series Data ◽  
General Trend ◽  
Union Density ◽  
Series Data ◽  
Class Identity ◽  
Individual Level ◽  
Over Time

Using individual-level time-series data covering the period from 1990 to 2011, this article provides an empirical analysis of how the influence of various aspects of class and ideology on union organization have changed over time in the Swedish context. The primary results indicate that although union density and the influence of class-related aspects and ideology are decreasing, particularly among groups with traditionally high levels of organization, the general trend is not valid for all categories of employees. Rather, it appears that where the tradition of being organized is weaker, the influence of class and class identity is particularly strong. No evidence is identified that supports the thesis of class loyalty vanishing among the young.

International rent sharing and takeovers

2016 ◽  
Vol 37 (2) ◽  
pp. 268-302 ◽  
Author(s):  
Jozef Konings ◽  
Luca Marcolin ◽  
Ilke van Beveren
Keyword(s):  
Multinational Enterprises ◽  
Propensity Scores ◽  
Selection Effects ◽  
Wage Setting ◽  
Target Firm ◽  
Firm Level ◽  
Content Type ◽  
Before And After ◽  
Rent Sharing ◽  
The Impact

Purpose – The purpose of this paper is to provide empirical evidence of international rent sharing in multinational enterprises. It looks at changes in rent sharing before and after the acquisition of a company by a foreign entity, and assesses the role of target and acquirer profitability in the wage setting process for the target firm. It therefore contributes to the evaluation of the impact of a form of globalization (inward foreign direct investment (FDI)) onto wages. Design/methodology/approach – The authors use a unique firm level longitudinal dataset of M & As in Belgium between 1998 and 2010. The authors construct a micro-level dataset containing takeover and accounting information for target and acquiring firms. The empirical set up permits to net the estimates from selection effects in the choice of target firm, using propensity score matching and a difference-in-difference approach. Findings – The authors find evidence that the deal does not significantly affect the degree of domestic rent sharing, but it enables international rent sharing. The authors qualify the results in terms of the acquirer’s location, industry link with the target and controlling stake. Further robustness specifications include different profits and controls, and a comparison with a sample of domestic acquisitions. Research limitations/implications – The sample of matches for acquired firms is constructed using propensity scores, which may not perfectly capture the differences between targeted and non-targeted companies. Although estimates should be net of selection effects, other sources of endogeneity may still make the estimates inconsistent. Practical implications – Updating the discussion on the labor market consequences of globalization, and on foreign takeovers in particular. Social implications – The discussion on international takeover should take into account not only the extensive margin (i.e. labor adjustments) but also salaries. The authors argue that through a precise channel (rent sharing) international takeovers of domestic companies may benefit the domestic labor force. Originality/value – The dataset was constructed for the purposes of this analysis; rent sharing is tested in a takeover scenario for the first time, thus avoiding selection biases.

Implicit Taxes Amid Race to the Bottom in a Global Tax Game

2020 ◽  
Vol 27 (2) ◽  
pp. 42
Author(s):  
Igor Semenenko ◽  
Junwook Yoo ◽  
Parporn Akathaporn
Keyword(s):  
Capital Mobility ◽  
Tax Rates ◽  
Corporate Tax ◽  
Firm Level ◽  
Race To The Bottom ◽  
Tax Subsidy ◽  
Tax Subsidies ◽  
Level Data ◽  
Tax Returns ◽  
Tax Hypothesis

Growing tax competition among national governments in the presence of capital mobility distorts equilibrium in the international corporate tax market. This paper is related to the literature that examines impact of international tax policies on corporate accounting statements. Employing international firm-level data, this study revisits the race-to-the-bottom hypothesis and documents that tax exemptions lowering effective tax rates relative to statutory rates increase pre-tax returns. This finding directly contradicts the implicit tax hypothesis documented by Wilkie (1992), who provided empirical evidence on inverse relationship between pre-tax return and tax subsidy. We also find evidences that relative importance of permanent versus timing component depends on the geography and that decline in corporate tax rates reduces impact of tax subsidies on profitability. Our findings suggest that tax subsidies play a different role than in 1968-1985, which was examined by Wilkie (1992). These results are consistent with the race-to-the-bottom hypothesis and income shifting explanation

scholarly journals Demobilised or dormant? Exploring pro-strike attitudes among employees who have never joined a strike

2020 ◽  
pp. 0143831X2098005
Author(s):  
Lorenzo Frangi ◽  
Muhammad Umar Boodoo ◽  
Robert Hebdon
Keyword(s):  
Collective Bargaining ◽  
Union Membership ◽  
Economic Conditions ◽  
Experience Goods ◽  
Political Values ◽  
Financial Situation ◽  
General Decline ◽  
Potential Impact ◽  
Over Time

The general decline of strikes does not necessarily imply that workers are demobilised. A dormant strike potential can be present. Drawing on strikes as ‘experience goods’, this article sheds light on this point by studying pro-strike attitudes among employees in 24 countries who have never been on strike. The variation in pro-strike attitudes is explained by both contextual (collective bargaining coverage, economic conditions and freedom of rights and liberties) and individual (union membership and confidence in unions, political values and household financial situation) factors. Deeper analyses of three countries highlight the potential impact of specific repertoires of contention developed over time on the formation of pro-strike attitudes. Implications for the labour conflict literature and union strategies are discussed.

Canada’s changing innovation landscape

2021 ◽  
Author(s):  
Md. Razib Alam ◽  
Bonwoo Koo ◽  
Brian Paul Cozzarin
Keyword(s):  
The United States ◽  
Destination Country ◽  
Firm Level ◽  
Individual Level ◽  
Patent Classification ◽  
The Usa ◽  
The Government ◽  
The Individual ◽  
The University ◽  
Over Time

Abstract Our objective is to study Canada’s patenting activity over time in aggregate terms by destination country, by assignee and destination country, and by diversification by country of destination. We collect bibliographic patent data from the Canadian Intellectual Property Office and the United States Patent and Trademark Office. We identify 19,957 matched Canada–US patents, 34,032 Canada-only patents, and 43,656 US-only patents from 1980 to 2014. Telecommunications dominates in terms of International Patent Classification technologies for US-only and Canada–US patents. At the firm level, the greatest number of matched Canada–US patents were granted in the field of telecommunications, at the university level in pharmaceuticals, at the government level in control and instrumentation technology, and at the individual level in civil engineering. We use entropy to quantify technological diversification and find that diversification indices decline over time for Canada and the USA; however, all US indices decline at a faster rate.

Diverse perennial crop mixtures sustain higher productivity over time based on ecological complementarity

2011 ◽  
Vol 26 (4) ◽  
pp. 317-327 ◽  
Author(s):  
Valentín D. Picasso ◽  
E. Charles Brummer ◽  
Matt Liebman ◽  
Philip M. Dixon ◽  
Brian J. Wilsey
Keyword(s):  
Species Richness ◽  
Species Diversity ◽  
Biomass Production ◽  
Cropping Systems ◽  
Individual Species ◽  
Selection Effects ◽  
Complementarity Effect ◽  
Change Over Time ◽  
Diversity Effects ◽  
Over Time

AbstractCropping systems that rely on renewable energy and resources and are based on ecological principles could be more stable and productive into the future than current monoculture systems with serious unintended environmental consequences such as soil erosion and water pollution. In nonagricultural systems, communities with higher species diversity have higher productivity and provide other ecosystem services. However, communities of well-adapted crop species selected for biomass production may respond differently to increasing diversity. Diversity effects may be due to complementarity among species (complementary resource use and facilitative interactions) or positive selection effects (e.g., species with higher productivity dominate the mixture), and these effects may change over time or across environments. Our goal was to identify the ecological mechanisms causing diversity effects in a biodiversity experiment using agriculturally relevant species, and evaluate the implications for the design of sustainable cropping systems. We seeded seven perennial forage species in a replicated field experiment at two locations in Iowa, USA, and evaluated biomass productivity of monocultures and two- to six-species mixtures over 3 years after the establishment year under management systems of contrasting intensity: one or three harvests per year. Productivity increased with seeded species richness in all environments, and the positive relationship did not change over time. Polyculture overyielding was due to complementarity among species in the community rather than to selection effects of individual species. Complementarity increased as a log-linear function of species richness in all environments, and this trend was consistent across years. Legume–grass facilitation may explain much of this complementarity effect. Although individual species with high biomass production had a major effect on productivity of mixtures, the species producing the highest biomass in monoculture changed over the years in most environments. Furthermore, transgressive overyielding was observed and was more prevalent in later years, in some environments. We conclude that choosing a single well-adapted species for maximizing productivity may not be the best alternative over the long term and that high levels of species diversity should be included in the design of productive and ecologically sound agricultural systems.

Industry Peer Networks (IPNs)

2019 ◽  
Vol 42 (1) ◽  
pp. 122-140 ◽  
Author(s):  
Ada Leung ◽  
Huimin Xu ◽  
Gavin Jiayun Wu ◽  
Kyle W. Luthans
Keyword(s):  
Small Businesses ◽  
Business Performance ◽  
Business Models ◽  
Peer Networks ◽  
Operating Efficiency ◽  
Structured Interviews ◽  
Firm Level ◽  
Content Type ◽  
Industry Trends ◽  
Over Time

Purpose This paper aims to examine a type of interorganizational learning called Industry Peer Networks (IPNs), in which a network of non-competing small businesses cooperates to improve their skills and to stay abreast of the industry trends, so that the firms remain competitive in the local and regional markets. The key characteristic of an IPN is the regular gathering of peers in small groups (typically 20 or fewer carefully selected members) in an atmosphere of significant trust, guided by a facilitator, to participate in a series of formal and informal activities through established guidelines, to share knowledge about management and marketing, exchange information about industry trends beyond their core markets, discuss issues related to company performance and provide constructive criticism about peer companies. Design/methodology/approach The qualitative research on the context included visits to 13 peer meetings, three workshops for peer members, seven semi-structured interviews with members and many communications with the founder, chairman, committee chairpersons and several facilitators of peer meetings that spanned across five years. Data collection and analysis followed grounded theory building techniques. Findings The authors identified both cooperative and competitive learning practices that a small business could carry out to grow from a novice to an expert IPN peer member. The cooperative elements such as peer discussions, disclosure of financial data and exposure to various business models allow member firms to learn vicariously through the successes and/or failure of their peers. At the same time, the competitive elements such as service delivery critiques, business performance benchmarking and firm ranking also prompt the members to focus on execution, to emphasize accountability and to strive for status in the network. The IPN in this research has also built network legitimacy over time, and it has sustained a viable administrative entity that has a recognizable form and structure, whose functions are to strategically manage network activities and network growth to attract like-minded new members. Research limitations/implications First, because this research focused on fleshing out the transformative practices engaged by IPN peers, it necessarily neglected other types of network relationships that affect the small businesses, including local competitors, vendors and customers. Second, the small employment size of these firms and the personal nature of network ties in the IPN may provide an especially fertile ground for network learning that might not exist for larger firms. Third, the technology-intensive and quality-sensitive nature of IT firms may make technological trend sensitization and operating efficiency more competitive advantages in this industry than in others. Finally, although participation in IPN is associated with higher level of perceived learning, the relationship between learning and business performance is not yet articulated empirically. Practical implications The study contributes to the understanding of cooperative/competitive transformative practices in the IPN by highlighting the defining features at each transformation stage, from firms being isolated entities which react to market forces to connected peers which proactively drive the markets. IPNs are most effective for business owners who are at their early growth stage, in which they are positioned to grow further. Nevertheless, the authors also present the paradoxical capacity of IPNs to propel firms along trajectories of empowerment or disengagement. Social implications As 78.5 per cent of the US firms are small businesses having fewer than 10 employees, the knowledge of firm and IPN transformation is important for both researchers and advocates of small businesses to understand the roots of success or failure of firms and the IPNs in which they are embedded. Originality/value Earlier research has not explored the network-level effects as part of a full array of outcomes. Instead, research involving IPNs has focused primarily on the motivation and immediate firm-level outcomes of IPNs. Research to this point has also failed to examine IPNs from a developmental perspective, how the firms and the IPN as a network transform over time.

Een halve eeuw vakbondslidmaatschap : Een verkennende longitudinale studie naar enkele cyclische determinanten voor de ledenontwikkeling van de Belgische vakbonden, 1946-1995

Res Publica ◽  
2004 ◽  
Vol 46 (1) ◽  
pp. 6-32
Author(s):  
Kurt Vandaele
Keyword(s):  
Trade Union ◽  
Union Membership ◽  
Trade Unions ◽  
Econometric Model ◽  
Positive Impact ◽  
Union Density ◽  
Free Riding ◽  
Structural Variable ◽  
Explanatory Variables ◽  
The Impact

This article explains the ebb and flow in Belgian trade union membership from 1946 to 1995 by replicating the econometric model by Bain and Elsheikhn in which changes in macro-economic variables are highly significant. Since the automatic indexation of wages and the extension of collective labour agreements invite free riding, the relevance of the change in inflation and real wage is quite striking. However, the free riding-effect is slowed down by the institutionalised presence of the trade unions on the work floor. The Ghent system explains the positive impact of the unemployment rate . The model is furthermore improved by the trade union density as a structural variable. The linear form reflects the enforcement effect, while the quadratic form mirrors the saturation effect on the trade union membership. Mainly due to the 'Allgemeinkoalitionsfähighkeit' of the Belgian government system, the impact of left parties on union growth and decline is not significant in a quantitative framework. With only four explanatory variables the model clarifies more than 75% of the fluctuations in Belgian trade union membership.

Delivering Organizational Change in Partnership With Trade Unions

2019 ◽  
pp. 387-397
Author(s):  
Gaye A. Greenwood ◽  
Carolyn Ward
Keyword(s):  
Decision Making ◽  
Organizational Change ◽  
New Zealand ◽  
Union Membership ◽  
Case History ◽  
Trade Unions ◽  
Union Density ◽  
Pivotal Role ◽  
Workplace Conditions ◽  
Union Leaders

This case history offers an insiders' view of bringing about change in union bargaining within major New Zealand organizations. While unions play a pivotal role in the day-to-day bargaining of wages and workplace conditions, there has been a significant reduction in union density and membership. In this case, two union leaders narrate how a shift from traditional bargaining to interest-based negotiation enabled participation in organizational change decision-making, built trust in relationships, and increased union membership.

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