Union Recognition and Paid Holiday Entitlement

This paper investigates the impact of unions in Britain on employees' entitlements to paid holidays. Theory suggests that longer holidays may be negotiated through collective than through individual bargaining. Data from the UK Quarterly Labour Force Survey are used to estimate the 'gap' between the paid holiday entitlements of workers with and without recognized unions. The results indicate that unions have a substantial impact on paid holiday entitlement. This paper also shows that the European Union Directive on Working Time may affect the holidays of about one and a quarter million workers.