Can Union Labor ever Cost Less?
通过估计三组建设项目的成本函数系统,考察工会对效率的影响。结果显示,工会承包商在大型商业办公楼中因规模经济有成本优势,但在学校和医院建设中非工会承包商成本更低,且利润无差异。
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.