Abstract

This paper aims to quantify the net effect of trade unionism on the performance of firms in Senegal. Using data from the World Bank’s Enterprises Survey, 2014, the paper develops two models, a model of productivity and a salary model based on the proportion of employees belong to a union. The results show a negative link between the impact of union and labor productivity of the large firms. The Senegalese companies where we observe greater trade union impact seem the have a poor performance in terms of labor productivity of employees. However, the effect is not linear because their is a threshold effect. Given the size of the company, the positive effect is not more pronounced in large enterprises. The results also show that the union has a positive effect on the wage earnings of workers in other word unionized workers have a higher salary level than non-unioned.

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