TY  - JOUR
AU  - Allen,Steven G.
TI  - Can Union Labor Ever Cost Less?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 2019
PY  - 1988
Y2  - February 1988
UR  - http://www.nber.org/papers/w2019
L1  - http://www.nber.org/papers/w2019.pdf
N1  - Author contact info:
Steven G. Allen
Jenkins Graduate School of Management
NC State University
2124 Nelson Hall
Raleigh, NC  27695-7229
Tel: 919/515-6941
Fax: 919/515-5073
E-Mail: STEVE_ALLEN@NCSU.EDU
AB  - 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.
ER  -