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New evidence on unions and layoff rates

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  • Mark Montgomery
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    Abstract

    This study uses data from the 1980 EOPP establishment survey to test the hypothesis that unionization leads to higher layoff rates. Previous studies, using industry-level data for manufacturing, have found that a firm with 100% of its workers unionized would lay off more than twice as many employees as an otherwise identical nonunionized firm. The results presented here show the unionization effect to be, at most, less than one-fifth as large as that found using industry data. In fact, the author finds that in manufacturing (though not in nonmanufacturing) it is not clear whether unionized establishments lay off more workers than nonunionized establishments because they are unionized or because they tend to be large. (Abstract courtesy JSTOR.)

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    Bibliographic Info

    Article provided by ILR Review, Cornell University, ILR School in its journal ILR Review.

    Volume (Year): 44 (1991)
    Issue (Month): 4 (July)
    Pages: 708-721

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    Handle: RePEc:ilr:articl:v:44:y:1991:i:4:p:708-721

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    Cited by:
    1. Vanessa V Tinsley, 2003. "Firms and Layoffs: The Impact of Unionization on Involuntary Job Loss," Working Papers 03-09, Center for Economic Studies, U.S. Census Bureau.
    2. Partridge, Mark D. & Rickman, Dan S., 1998. "Regional differences in chronic long-term unemployment," The Quarterly Review of Economics and Finance, Elsevier, vol. 38(2), pages 193-215.
    3. Fligstein, Neil & Shin, Taek-Jin, 2005. "Shareholder Value and Changes in American Industries, 1984-2000," Institute for Research on Labor and Employment, Working Paper Series qt82j7915n, Institute of Industrial Relations, UC Berkeley.
    4. Fligstein, Neil & Shin, Taek-Jin, 2007. "Shareholder Value and the Transformation of American Industries, 1984-2001," Institute for Research on Labor and Employment, Working Paper Series qt4r16k6j6, Institute of Industrial Relations, UC Berkeley.

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