Can Union Labor Ever Cost Less? / Steven G. Allen.

Format:

Book

Author/Creator:

Allen, Steven G.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w2019.

NBER working paper series no. w2019

Language:

English

Subjects (All):

Wages--Construction workers.

Wages.

Labor unions.

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1986.

Cambridge : National Bureau of Economic Research, 1986.

Summary:

This paper examines the effect of unions on efficiency by estimating cost function systems over three different sets of construction projects. The results show that union contractors have greater economies of scale. This gives them a cost advantage in large commercial office buildings, but in school and hospital construction, nonunion contractors have lower costs at all output levels. Despite the cost differences, profits for nonunion contractors in school and hospital construction are no higher than those for union contractors because the burden of higher union costs is shifted to buyers.

Notes:

Print version record

September 1986.