Unions, training and firm performance

Article, Research, Preprint English OPEN
Addison, John T. ; Belfield, Clive R. (2007)
  • Publisher: Nürnberg: Institut für Arbeitsmarkt- und Berufsforschung (IAB)
  • Journal: (vol: 40, pp: 361-381)
  • Subject: Gewerkschaftlicher Organisationsgrad | betriebliche Weiterbildung, Gewerkschaftspolitik - Auswirkungen, Lohnhöhe, Unternehmenserfolg, Großbritannien | training duration | labour productivity | Unternehmenserfolg | Rentabilität | Arbeitsproduktivität | Schätzung | Union recognition | Lohnhöhe | financial performance | bargaining structure | Großbritannien | betriebliche Weiterbildung | earnings, training duration, training intensity/coverage, training Incidence, employer-provided training, bargaining structure, union recognition, financial performance, labour productivity | J24 | earnings | Betriebliche Bildungsarbeit | training Incidence | Unternehmensentwicklung | training intensity/coverage | Gewerkschaftspolitik - Auswirkungen | employer-provided training | Arbeitsplatz
    • ddc: ddc:330
      jel: jel:J33 | jel:J51 | jel:J24
    mesheuropmc: education

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.
  • References (5)

    BARTEL, A. (1994). “Productivity Gains from the Implementation of Employee Training Programs.” Industrial Relations, 33, 411-425.

    BARTEL, A. (1995). “Training, Wage Growth, and Job Performance: Evidence from a Company Database.” Journal of Labor Economics, 13, 401-425.

    DUSTMANN, C. and SCHÖNBERG, U. (2004). “Training and Union Wages.” Discussion Paper No. 1435, Bonn: Institute for the Study of Labor/IZA.

    KUCKULENZ, A. and T. ZWICK (2003). “The Impact of Training on Earnings - Differences between Participant Groups and Training Forms.” Discussion Paper No. 03-57, Mannheim: Centre for European Economic Research/ZEW.

    ZWICK, T. (2006). “The Impact of Training Intensity on Establishment Productivity.” Industrial Relations, 45. 26-46.

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