Technical efficiency, unions and decentralized labor contracts

"This paper explores the link between the presence of unions in the workplace, the adoption of decentralized labor agreements and technical efficiency, using a large sample of Italian manufacturing firms. We apply the Data Envelopment Analysis, and its robust version based on bootstrap theory,...

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Main Authors: Devicienti, Francesco, Manello, Alessandro, Vannonni, Davide
Institution:ETUI-European Trade Union Institute
Format: TEXT
Language:English
Published: Bonn 2016
IZA
Subjects:
Online Access:https://www.labourline.org/KENTIKA-021412484969-Technical-efficiency,-unions-a.htm
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author Devicienti, Francesco
Manello, Alessandro
Vannonni, Davide
author_facet Devicienti, Francesco
Manello, Alessandro
Vannonni, Davide
collection Library items
description "This paper explores the link between the presence of unions in the workplace, the adoption of decentralized labor agreements and technical efficiency, using a large sample of Italian manufacturing firms. We apply the Data Envelopment Analysis, and its robust version based on bootstrap theory, to get reliable estimates of technical efficiency at the firm level in a standard first stage. We devote particular attention to the specific technology adopted, by distinguishing 20 different sector frontiers, as well as to the presence of outliers. The obtained efficiency scores are analyzed in a second stage applying a truncated regression model estimated via Maximum Likelihood, following the Simar and Wilson (2007, 2011) methodology. Our results highlight that the presence of workplace unionization decreases the level of technical efficiency, while aspects limiting the unions' power such as a strong exposure to international markets, high debt levels or the prevalence of flexible assets partially reduce the negative effect. However, when firms adopt decentralized labor contracts agreements, the effect on efficiency is positive and partially compensates the negative unions' effect. The results are robust to the inclusion of many firm characteristics and to different model specifications."
format TEXT
geographic Italy
id 021412484969_16dd99b608d3467e891d62f6831572fa
institution ETUI-European Trade Union Institute
is_hierarchy_id 021412484969_16dd99b608d3467e891d62f6831572fa
is_hierarchy_title Technical efficiency, unions and decentralized labor contracts
language English
physical 29 p.
Digital
publishDate 2016
publisher Bonn
IZA
spellingShingle Devicienti, Francesco
Manello, Alessandro
Vannonni, Davide
collective agreement
decentralization
innovation
labour contract
manufacturing industry
productivity
Technical efficiency, unions and decentralized labor contracts
thumbnail https://www.labourline.org/Image_prev.jpg?Archive=105876892305
title Technical efficiency, unions and decentralized labor contracts
topic collective agreement
decentralization
innovation
labour contract
manufacturing industry
productivity
url https://www.labourline.org/KENTIKA-021412484969-Technical-efficiency,-unions-a.htm