Human Resource Policies and Union-Nonunion Productivity Differences

Many researchers in both economics departments and business schools recently have become interested in examining how much of an effect human resource decisions and policies have on firm performance. This paper surveys the literature on unionism and productivity and discusses its implications for future research on more general issues. The main focus is on (I) conclusions as to whether unions raise or lower productivity and (2) procedures used to identify the channels through which unions affect productivity. The studies of unions and productivity have documented large productivity differences between seemingly comparable union and nonunion establishments. In many cases unionism is associated with higher productivity, especially when unionized firms are in a competitive environment. However, the mechanisms responsible for union-nonunion productivity differences in each study remain poorly understood, either because detailed information on how unions affected company decisions was not available or because the available information produced inconclusive results. These conclusions suggest that human resource policies can have a very large effect on financial outcomes, but our ability to estimate the magnitude of that effect for a particular policy is currently very limited.

The Value of Phased Retirement

This paper examines how phased retirement plans in higher education create value for both the institution and individual faculty, based upon evidence from the Survey of Changes in Faculty Retirement Policies and an in-depth case study of the University of North Carolina system. Faculty benefit by receiving improved opportunities for part-time work and by having the ability to make a smoother transition to retirement. The policy is clearly of great value to the 25 to 35 percent of UNC faculty who opt for phased over full retirement. The biggest payoff to the university is an increase in the odds that low-performing faculty will start the retirement process earlier. Universities also anticipate increased flexibility in managing faculty employment and compensation; phased retirement is most likely to be observed on campuses where a high percentage of faculty has tenure.

Declining Unionization in Construction: The Facts and the Reasons

This paper documents and examines the forces behind the decline of unionization in the construction industry. The proportion of construction workers belonging to unions has dropped from slightly less than one-half in 1966 to less than one-third in 1984. The employment share of union contractors has declined even further because of the fraction of union members working in the open shop rose from 29 to 46 percent between 1973 and 1981. Initially, an important factor in the initial decline in percentage unionized was the growth in the union-nonunion wage gap between 1967 and 1973. However, the gap did not widen any further after 1973 and actually has narrowed substantially since 1978. A key subsequent factor has been the erosion of the productivity advantage of union contractors, which dropped substantially between 1972 and 1977 and vanished by 1982. The decline of unionization is unrelated to changes in worker characteristics or changes in the mix and location of construction activity.

Additional Records of Michigan Bat Ectoparasites

New Michigan county records for Ischnopsyllidae, Cimicidae, Spinturnicidae, Macro- nyssidae, and Trombiculidae from bats are given along with two new bat/parasite records for the United States

Can Union Labor Ever Cost Less?

This paper examines the effect of unions on efficiency by estimating cost function systems over three different sets of construction projects. The results show that union contractors have greater economies of scale. This gives them a cost advantage in large commercial office buildings, but in school and hospital construction, nonunion contractors have lower costs at all output levels. Despite the cost differences, profits for nonunion contractors in school and hospital construction are no higher than those for union contractors because the burden of higher union costs is shifted to buyers.

Constraining Dark Energy with X-ray Galaxy Clusters, Supernovae and the Cosmic Microwave Background

We present new constraints on the evolution of dark energy from an analysis of Cosmic Microwave Background, supernova and X-ray galaxy cluster data. Our analysis employs a minimum of priors and exploits the complementary nature of these data sets. We examine a series of dark energy models with up to three free parameters: the current dark energy equation of state w_0, the early time equation of state w_et and the scale factor at transition, a_t. From a combined analysis of all three data sets, assuming a constant equation of state and that the Universe is flat, we measure w_0=-1.05+0.10-0.12. Including w_et as a free parameter and allowing a_t to vary over the range 0.5<a_t<0.95 where the data sets have discriminating power, we measure w_0=-1.27+0.33-0.39 and w_et=-0.66+0.44-0.62. We find no significant evidence for evolution in the dark energy equation of state parameter with redshift. Marginal hints of evolution in the supernovae data become less significant when the cluster constraints are also included in the analysis. The complementary nature of the data sets leads to a tight constraint on the mean matter density, Omega_m and alleviates a number of other parameter degeneracies, including that between the scalar spectral index n_s, the physical baryon density Omega_bh^2 and the optical depth tau. This complementary nature also allows us to examine models in which we drop the prior on the curvature. For non-flat models with a constant equation of state, we measure w_0=-1.09+0.12-0.15 and Omega_de=0.70+-0.03. Our analysis includes spatial perturbations in the dark energy fluid, assuming a sound speed c_s^2 =1. For our most general dark energy model, not including such perturbations would lead to spurious constraints on w_et which would be tighter by approximately a factor two with the current data. (abridged)Comment: 11 pages, 13 figures, 2 tables. Accepted for publication in MNRAS. Two new figures added: Fig.9 shows the effects of including dark energy perturbations and Fig.10 compares X-ray cluster data with 2dF dat

Productivity Levels and Productivity Change Under Unionism

This paper examines how unions affect the rate of productivity change over time. The direction of union impact cannot be predicted from economic theory. Firms may tend to select more productive technologies to offset the cost of higher union wages or they may tend to select less productive technologies to keep union wage demands in line. Evidence from manufacturing indicates that unions have not affected productivity growth, but in the construction industry productivity growth has been much slower in areas where there is a high initial level of unionization or where unionization is growing.

Unions, Pension Wealth, and Age-Compensation Profiles

This paper examines the effect of unions on both the magnitude and distribution of pension benefits. Our empirical results show that beneficiaries in collectively bargained plans receive larger benefits when they retire, receive larger increases in their benefits after they retire, and retire at an earlier age than beneficiaries in other pension plans. As a result, the pension wealth of union beneficiaries is 50 to 109 percent greater than that of nonunion beneficiaries. Just as wage differentials within and across establishments are smaller among union workers, benefit differentials within and across cohorts of retirees are smaller among union beneficiaries. This results from the smaller weight given to salary average in determining initial benefits and the larger percentage increases given to those who have been retired the longest under post-retirement increases. The more compressed benefit structure under unionism causes the union-nonunion compensation (wages plus pension contributions) differential to decline more quickly than the union-nonunion wage differential over the life cycle.

Unions and Efficiency in Private Sector Construction: Further Evidence

Previous studies using micro data to estimate the impact of unions on productivity in construction in the early 1970's have found productivity to be higher for union than nonunion contractors in the private sector. The validity of these studies has been questioned in light of the declining market share of union contractors. This study re-examines union-nonunion productivity differences over a sample of retail stores and shopping centers built in the late 1970's. It finds that square footage put in place per hour is 51 percent greater for union than nonunion contractors. Lacking data on wage rates by occupation, the impact of unions on efficiency can be gauged only by looking at how unions affect costs, profit rates, and prices. This study finds no mean cost per square foot difference between union and nonunion contractors and offers mixed econometric evidence on translog cost functions. There is no difference in profit rates or prices between union and nonunion contractors in this sample.