Advanced Search
MyIDEAS: Login to save this article or follow this journal

Long-Run Impacts of Unions on Firms: New Evidence from Financial Markets, 1961--1999

Contents:

Author Info

  • David S. Lee
  • Alexandre Mas
Registered author(s):

    Abstract

    We estimate the effect of new private-sector unionization on publicly traded firms' equity value in the United States over the 1961--1999 period using a newly assembled sample of National Labor Relations Board (NLRB) representation elections matched to stock market data. Event-study estimates show an average union effect on the equity value of the firm equivalent to $40,500 per unionized worker, an effect that takes 15 to 18 months after unionization to fully materialize, and one that could not be detected by a short-run event study. At the same time, point estimates from a regression discontinuity design--comparing the stock market impact of close union election wins to close losses--are considerably smaller and close to zero. We find a negative relationship between the cumulative abnormal returns and the vote share in support of the union, allowing us to reconcile these seemingly contradictory findings. Copyright 2012, Oxford University Press.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://hdl.handle.net/10.1093/qje/qjr058
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Oxford University Press in its journal The Quarterly Journal of Economics.

    Volume (Year): 127 (2012)
    Issue (Month): 1 ()
    Pages: 333-378

    as in new window
    Handle: RePEc:oup:qjecon:v:127:y:2012:i:1:p:333-378

    Contact details of provider:

    Related research

    Keywords:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Cuñat, Vicente & Gine, Mireia & Guadalupe, Maria, 2013. "Say Pays! Shareholder Voice and Firm Performance," MPRA Paper 48489, University Library of Munich, Germany.
    2. repec:cen:wpaper:14-09 is not listed on IDEAS
    3. Maury Gittleman & Morris M. Kleiner, 2013. "Wage Effects of Unionization and Occupational Licensing Coverage in the United States," Working Papers 464, U.S. Bureau of Labor Statistics.
    4. Emin Dinlersoz & Henry Hyatt & Jeremy Greenwood, 2014. "Who do Unions Target? Unionization over the Life-Cycle of U.S. Businesses," Economie d'Avant Garde Research Reports 24, Economie d'Avant Garde.
    5. Addison, John T. & Teixeira, Paulino & Stephani, Jens & Bellmann, Lutz, 2014. "Union Decline and the Coverage Wage Gap in Germany," IZA Discussion Papers 8257, Institute for the Study of Labor (IZA).
    6. Alex Edmans & Lucius Li & Chendi Zhang, 2014. "Employee Satisfaction, Labor Market Flexibility, and Stock Returns Around The World," NBER Working Papers 20300, National Bureau of Economic Research, Inc.
    7. Addison, John T. & Teixeira, Paulino & Evers, Katalin & Bellmann, Lutz, 2013. "Indicative and Updated Estimates of the Collective Bargaining Premium in Germany," IZA Discussion Papers 7474, Institute for the Study of Labor (IZA).
    8. Olga Kuzmina, 2013. "Operating Flexibility and Capital Structure: Evidence from a Natural Experiment," Working Papers w0197, Center for Economic and Financial Research (CEFIR).

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:oup:qjecon:v:127:y:2012:i:1:p:333-378. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.