Union effects on productivity,personnel practices,and survival in the automotive parts industry |
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Authors: | Robert S Kaufman Roger T Kaufman |
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Institution: | (1) Bain and Company, 02116 Boston, MA;(2) Smith College, 01063 Northampton, MA |
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Abstract: | We estimate the effects of unions on productivity and compensation in the automotive engine and non-ornamental body parts
manufacturing industry using data obtained from a detailed questionnaire and a series of personal interviews. We find no significant
union productivity effect but a significant 30 percent compensation premium in firms organized by the United Auto Workers.
Individual personnel policies were shown to differ significantly in the expected manner between the union and nonunion sectors.
Finally, we use data on bankrupt firms to show how the failure to correct for sample selection bias might yield upwardly biased
estimates of the union productivity effect.
We would like to thank Elizabeth Savoca and an anonymous referee for their helpful suggestions. |
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