A model of labour productivity and union density in British private sectorunionised establishments

In this paper, a micro theoretic model of the simultaneous determination of labour productivity and union density is developed and estimated using Bri tish establishment-level data from the 1990 Workplace Employee Relations Su rvey. The main empirical finding is that higher union bargaining power does not necessarily lower labour productivity in union firms, ceteris paribus. Separate bargaining by multiple unions has a negative effect, but producti vity is higher if management recommends union membership. There is also evi dence that if unions can more effectively provide services to their members , and secure management support for union membership, union density may rec over.