The Effects of Labor Unions on Workplace Performance: New Evidence from France
Abstract
How do unionization and collective bargaining affect firm profitability? In
this paper, we revisit this question using a nationally representative sample of French
establishments. In addition to examining union/non-union differences in profitability,
we explore the possible sources from which unions capture profits. The results
indicate that unionization in France is associated with poorer financial performance
in the workplace. The results also indicate that concentration-related profits do not
provide an important source of union rents in France. Finally, this study provides
strong support for the hypothesis of union appropriation of the returns from long-
lived physical capital.