ABSTRACT

This chapter synthesizes research on estimates of union effects on three types of employee behavior and attitudes that are potential channels through which unionization impacts productivity: voluntary turnover, job satisfaction, and commitment to the organization for whom they work. Voluntary labor turnover is essential to re-allocating labor among establishments and sectors and allowing workers and firms to obtain better matches over time, but turnover above some basic level raises the cost of production and lowers productivity and profitability. Several researchers have used meta-analysis to review studies of the association between job satisfaction and job performance from the 1980s to the present, uniformly finding a positive association. The implication is either that more satisfied workers are more productive, or that more productive workers are more satisfied, or both. Freeman notes the paradox in the 1970s data that showed unionized workers reported themselves less satisfied than non-union workers but also as less inclined to leave their jobs.