An Inquiry Into Associative Links Between Labor Unionization, Salary Gap and Productivity

Tsiluiko, Anastasiia

Abstract

The present study inquires into associative links between Labor Unionization, Salary Gap and Productivity. It was used an unbalanced dataset of the most capitalized companies for the research to be made. One of the main purpose of trade unions creation is to lower the salary gap within the business entity. As well as provide security and stability for workers. We explained this aspect not only through empirical analysis but also relying on the review of psychological literature about the needs of workers and people in general. Our empirical analysis demonstrates the higher the trade union representation, the lower the salary gap. Such findings may be explained by ‘tournament theory’. As it seems to be suitable to explain the phenomena for steep-hierarchy firms, which constitute the research sample. Finally, the employee productivity seems to be negatively associated with the trade union representation. A further inquiry into this problem seems warranted.

Keywords

trade unionization (1)labor unionization (1)trade union representation (1)productivity (2)salary gap (1)workers’ needs (1)

References

Chen, J. Tong, J.Y., Wang, W. and Zhang, F. (2019). The Economic Consequences of Labor Unionization: Evidence from Stock Price Crash Risk. Journal Bussiness of Ethics, 157, 775–796. http://eds.b.ebscohost.com/ DOI 10.1007/s10551-017-3686-0 (16.12.19). [Google Scholar]
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APA style

Tsiluiko, Anastasiia (2019). An Inquiry Into Associative Links Between Labor Unionization, Salary Gap and Productivity. (2019). An Inquiry Into Associative Links Between Labor Unionization, Salary Gap and Productivity. Zeszyty Programu Top 15, 11. (Original work published 2/2021AD)

MLA style

Tsiluiko, Anastasiia. “An Inquiry Into Associative Links Between Labor Unionization, Salary Gap And Productivity”. 2/2021AD. Zeszyty Programu Top 15, vol. 11, 2019.

Chicago style

Tsiluiko, Anastasiia. “An Inquiry Into Associative Links Between Labor Unionization, Salary Gap And Productivity”. Zeszyty Programu Top 15, Zeszyty Programu TOP 15, 11 (2019).

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[1] Chen, J. Tong, J.Y., Wang, W. and Zhang, F. (2019). The Economic Consequences of Labor Unionization: Evidence from Stock Price Crash Risk. Journal Bussiness of Ethics, 157, 775–796. http://eds.b.ebscohost.com/ DOI 10.1007/s10551-017-3686-0 (16.12.19). [Google Scholar]

[2] Clark, G.D. and Duncan, I.J. (2018). UK's biggest firms will have to justify pay gap between bosses and their workers. https://www.gov.uk/government/news/uks-biggest-firms-will-have-to-justify-pay-gap-between-bosses-and-their-workers (22.12.20) [Google Scholar]

[3] Crawshaw, J.R., Budhar, P. and Davis, A. (2014). Human Resources Management Strategic and International Perspective. London: Sage. [Google Scholar]

[4] Daud, Z. and Tumin, Sh. (2013). The Relationship between Employees’ Need and the Formation of Trade Union: The Malaysian Manufacturing Company’s Experience. International Journal of Business and Social Science, 4(13), 124–134. https://ijbssnet.com/journals/Vol_4_No_13_October_2013/15.pdf (25.12.2019). [Google Scholar]

[5] de Pinto, M. and Lingens, J. (2019). The impact of unionization costs when firm-selection matters. Labour Economics, 60, 50–63. http://eds.b.ebscohost.com/ 0927-5371 (16.12.19). [Google Scholar]

[6] Fatula, D. (2018). Selected micro- and macroeconomic conditions of wages, income and labor productivity in Poland and other European Union countries. Contemporary Economics, 12(1), 14–32. http://eds.b.ebscohost.com/ DOI 10.5709/ce.1897-9254.261 (18.12.2019). [Google Scholar]

[7] Kerr, J. (2017, May). Your People Are Your Most Important Asset. https://www.inc.com/james-kerr/your-people-are-your-most-important-asset.html (22.12.19). [Google Scholar]

[8] Lee-Wen Yang, Yi-Fang Yang and Wun-Hnog Su (2015). Salary gap and operating performance: perspective of tournament theory. Global Journal of Business Research, 9(1), 15–26. http://eds.b.ebscohost.com/ ISSN: 2157-0191 (16.12.19). [Google Scholar]

[9] Morissette, R., Schellenberg, G. and Johnson, A. (2005). Diverging trends in unionization. Perspectives on Labour and Income, 6. https://www.researchgate.net/publication/237242624_Diverging_trends_in_unionization (17.05.20). [Google Scholar]

[10] Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M. (2008). Human Resources Management Gaining a Competitive Management. New York: McGraw-Hill Irwin. [Google Scholar]

[11] Ori, J. (2019). The Hierarchy of Needs for Employees. https://smallbusiness.chron.com/hierarchy-needs-employees-20121.html (25.12.19). [Google Scholar]

[12] Önday, Özgür (2016). New Trends And Comparative Analysis On Unionization Among Professionals The Case Of Turkey. The International Academy of Business and Public Administration Disciplines Conference Program. Istanbul, Turkey. July 28–31. https://www.researchgate.net/publication/309424381_NEW_TRENDS_AND_COMPARATIVE_ANALYSIS_ON_UNIONIZATION_AMONG_PROFESSIONALS_THE_CASE_OF_TURKEY (17.05.2020). [Google Scholar]

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