Unions and the Economic Performanceof Brazilian Establishments

Naercio Menezes-Filho, Helio Zylberstajn, Jose Paulo Chahad and Elaine Pazello

No 3157, Research Department Publications from Inter-American Development Bank, Research Department

Abstract: Using a pooled sample, this paper indicates that unions seem to affect the economic performance of Brazilian establishments, especially in terms of profitability, employment and productivity. Unions tend to reduce profitability, whereas the relationship between union density and productivity, employment and average wages seems to be concave. These performance indicators first rise with union density up to a certain density level (usually about 50 percent) and then start to decline. These results indicate that some unionism may be good for the plants` economic performance, although too much unionism may start having negative effects.

Date: 2002-09
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Working Paper: Unions and the Economic Performance of Brazilian Establishments (2002)
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