Economic Effect of Labor Unions

Abstract

This article presents an overview of research from outside Japan involving the effect of labor unions on wages, employment separation rate, employment adjustment, and productivity. It also discusses the outcomes and problems of research from Japan. Recently, more data regarding the effect of labor unions on wages has become available for both males and females. With regard to the effect on separation rate, much research suggests that labor unions tend to hold separation rate down; however, it is not clear what working conditions are impacted or contribute to a lowered rate of separation. Although the fluctuation in employment among Japanese labor unions is fairly small, employment levels are reduced when companies experience periods of unprofitability. When it comes to research involving the impact of unions on productivity, the data available in Japan are insufficient for adequate study.