Unionization and Productivity in Office Building and School Construction

Abstract

This study examines the difference in productivity between union and nonunion contractors in the construction industry within two samples, one of 83 commercial office buildings completed in 1973–74 and the other of 68 elementary and secondary schools completed in 1972. An analysis that includes controls for differences in capital-labor ratios, observable labor quality, region, and building characteristics shows that union productivity in the office building projects was at least 30 percent higher than nonunion productivity, measured in terms of square feet of floor space completed per hour worked; and from zero to 20 percent higher in school projects, measured in physical units and value added, respectively.