Unions, Training, and Firm Performance

47 Pages Posted: 23 May 2008

See all articles by John T. Addison

John T. Addison

University of South Carolina - Moore School of Business - Department of Economics; IZA Institute of Labor Economics

Clive R. Belfield

Columbia University Teachers' College - National Center for the Study of Privatization in Education

Abstract

The present paper uses a combination of workplace and linked employee-workplace data from the 1998 Workplace Employee Relations Survey and the 2004 Workplace Employment Relations Survey to examine the impact of unions on training incidence, training intensity/coverage, and training duration. It also examines the impact of unions and training on earnings and a measure of establishment labour productivity. In addition, the implications of training for the firm's bottom line are evaluated. Union effects on training emerge as fairly subtle, and are more positive when using individual rather than plant-wide training data. A positive impact of training on earnings is detected in both the individual and plant-wide wage data, albeit only for the earlier survey. Consistent with other recent findings, the effects of union recognition on earnings are today rather muted, while union-training interaction effects vary greatly. Instrumenting training provides positive results for the labour productivity outcome and, in the case of the earlier survey, for the financial performance indicator as well. However, some negative effects of unions are now also detected.

Keywords: labour productivity, union recognition, bargaining structure, employer-provided training, training Incidence, training intensity/coverage, training duration, earnings, financial performance

JEL Classification: J24, J33, J51

Suggested Citation

Addison, John T. and Belfield, Clive R., Unions, Training, and Firm Performance. , Vol. , pp. -, . Available at SSRN: https://ssrn.com/abstract=1136456 or http://dx.doi.org/10.1111/j.0042-7092.2007.00700.x

John T. Addison (Contact Author)

University of South Carolina - Moore School of Business - Department of Economics ( email )

The Francis M. Hipp Building
1705 College Street
Columbia, SC 29208
United States
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HOME PAGE: http://mooreschool.sc.edu/moore/economics/profiles/addison.htm

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Clive R. Belfield

Columbia University Teachers' College - National Center for the Study of Privatization in Education ( email )

525 W. 120th St.
New York, NY 10027
United States

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