Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/185354 
Year of Publication: 
2018
Series/Report no.: 
IZA Discussion Papers No. 11894
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Do unions promote creative destruction? In this paper we apply a shift-share approach and historical unionisation data from 1918 to study the impact of changes in regional unionisation on regional wage and productivity growth and job creation and destruction during the period 2003-2012. As local regional-industrial unionisation increases, wages grow. Lay-offs through plant closure and shrinking workplaces increase, but entry and new hires are unaffected. Overall, the increased unionisation yields a positive impact on regional productivity, exceeding the wage growth, partly due to the closure of less productive firms, but also enhanced productivity of the survivors and new entrants.
Subjects: 
trade unions
entry/exit
creative destruction
wages
productivity
historical data
JEL: 
J01
J08
J50
J51
Document Type: 
Working Paper

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