Bonuses, unions, and labor productivity in South Korea

Article Abstract:

Using a set of time-series (1972-1989) and cross-sectional data on eight two-digit Korean manufacturing industries, we examine the variability of South Korea's employee bonus system and the effect of the employee bonus on productivity. A test of the variability of the bonus showed that the bonus rate (ratio of the bonus to the wage) was positively influenced by industrial output, so the bonus is not merely a disguised wage. An augmented Cobb-Douglas production function estimation shows that the bonus has a positive and significant productivity effect. Capital-intensive and labor-intensive industries did not have significantly different productivity effects due to the bonus. Lastly, Korean unions reduced labor productivity and negatively affected the productivity effect of the bonus. Also, compared with the previous period, the productivity effect of the bonus has become negative since the 1987 Great Labor Offensive. (Reprinted by permission of the publisher.)

South Korea, Compensation and benefits, Corporations, Labor productivity, Bonuses, Corporations, South Korean

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Union views of managerial prerogatives revisited: the prospects for labor-management cooperation

Article Abstract:

Using data from a survey of AFL-CIO affiliated unions, I compare union views of managerial prerogatives in 1997 with those reported in a 1968 study. Unions today desire more input into the firm's decision-making process than in 1968, particularly with regard to issues traditionally reserved to management. Given management's traditional resistance to "outside" interference, more cooperative relationships between unions and management may be problematic. (Reprinted by permission of the publisher.)

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Union-nonunion differentials and establishment size: evidence from the NLSY

Article Abstract:

We provide new empirical on union-nonunion differentials using the 1990 wave of the National Longitudinal Surveys of Youth (NLSY) data set which allows us to examine a broader set of fringe benefits than most other studies and provides a rich set of control variables. Our major finding is that the union effect decreases with establishment size for both components of the compensation structure, i.e., wages and fringe benefits. (Reprinted by permission of the publisher.)

Employee Benefits & Services, Human resource management, Employee benefits, Corporate size

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