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Labour relations quality and productivity: An empirical analysis on French firms

Author

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  • Cette, G.
  • Dromel, N.
  • Lecat, R.
  • Paret, A-C.

Abstract

This analysis characterizes empirically how good labour relations can alleviate the negative impact on productivity of regulatory constraints or workforce opposition. Our evidence of good labour relations lies in the existence of binding collective agreements, at the firm or at the industry level. The estimations are based on a unique dataset collected by the Banque de France about the obstacles French firms may face in increasing their utilisation of production factors. Data are an unbalanced sample of 7,441 observations, corresponding to 1,545 companies, over the period 1991-2008. Our main results may be summarised as follows: i) ‘workforce or union opposition’ interacted with ‘regulatory constraints’ has a negative significant impact on total factor productivity (TFP). Regulatory constraints would become really binding when workers or unions use them as a tool to oppose management’s decisions; ii) ‘regulatory constraints’ interacted with ‘branch or firm agreement’ has a positive significant impact on TFP. These agreements, which can only be obtained if labour relations are supportive, would be used by firms to offset the negative impact of regulatory constraints. These results confirm that labour relations quality, at the branch or the firm levels, is an important factor of productive performance.

Suggested Citation

  • Cette, G. & Dromel, N. & Lecat, R. & Paret, A-C., 2012. "Labour relations quality and productivity: An empirical analysis on French firms," Working papers 389, Banque de France.
    • Handle: RePEc:bfr:banfra:389
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    Cited by:

    1. John T. Addison & Paulino Teixeira, 2020. "Trust and Workplace Performance," British Journal of Industrial Relations, London School of Economics, vol. 58(4), pages 874-903, December.
    2. Jean Barthélemy & Magali Marx, 2012. "Generalizing the Taylor Principle: New Comment," SciencePo Working papers hal-03461113, HAL.
    3. repec:hal:spmain:info:hdl:2441/3bvs8clr5k9dqqcbq7j5ul2o65 is not listed on IDEAS
    4. repec:spo:wpmain:info:hdl:2441/3bvs8clr5k9dqqcbq7j5ul2o65 is not listed on IDEAS
    5. Jean Barthélemy & Magali Marx, 2012. "Generalizing the Taylor Principle: New Comment," Working Papers hal-03461113, HAL.
    6. Chouard, V. & Minier, A. & Tarrieu, S. & Baudry, L. & Soual, A., 2015. "La progression modérée de la durée d’utilisation des équipements se poursuit en 2014 - Résultats de l’enquête menée par la Banque de France," Bulletin de la Banque de France, Banque de France, issue 199, pages 43-52.
    7. Sandra NEVOUX & Loriane PY & Laurent BAUDRY & Souny HARTWEG & Agnès MINIER & Sylvie TARRIEU, 2019. "Productive capital operating times continued to increase in 2018 - Findings of the annual Banque de France survey [La durée d’utilisation des équipements continue de progresser en 2018. Résultats d," Bulletin de la Banque de France, Banque de France, issue 222.

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    More about this item

    Keywords

    Labour relation; collective bargaining; trade unions; productivity.;
    All these keywords.

    JEL classification:

    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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