Using nationally representative workplace surveys we examine the relationship between unionization<br />

and workplace financial performance in Britain and France. We find that union bargaining is<br />

detrimental to workplace performance in Britain and that this effect is larger when unionization is<br />

endogenized. In France, union bargaining is associated with poorer workplace performance but the effect disappears once unionization is treated as endogenous. However, high levels of union density do have a negative impact on workplace performance in France. In Britain the union effect does not rise with union density