Long-Run Impacts of Unions on Firms: New Evidence from Financial Markets, 1961--1999
AbstractWe 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 InfoIf 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.
Bibliographic InfoArticle provided by Oxford University Press in its journal The Quarterly Journal of Economics.
Volume (Year): 127 (2012)
Issue (Month): 1 ()
Contact details of provider:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- John Addison & Paulino Teixeira & Katalin Evers & Lutz Bellmann, 2014.
"Indicative and Updated Estimates of the Collective Bargaining Premium in Germany,"
Industrial Relations: A Journal of Economy and Society,
Wiley Blackwell, vol. 53(1), pages 125-156, 01.
- 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).
- Olga Kuzmina, 2013. "Operating Flexibility and Capital Structure: Evidence from a Natural Experiment," Working Papers w0197, Center for Economic and Financial Research (CEFIR).
- Cuñat, Vicente & Gine, Mireia & Guadalupe, Maria, 2013.
"Say Pays! Shareholder Voice and Firm Performance,"
48489, University Library of Munich, Germany.
- Vicente Cunat & Mireia Gine & Maria Guadalupe, 2013. "Say Pays! Shareholder Voice and Firm Performance," Upjohn Working Papers and Journal Articles 13-192, W.E. Upjohn Institute for Employment Research.
- Vicente Cuñat & Mireia Giné & Maria Guadalupe, 2013. "Say pays! Shareholder voice and firm performance," LSE Research Online Documents on Economics 55406, London School of Economics and Political Science, LSE Library.
- Maury Gittleman & Morris M. Kleiner, 2013.
"Wage Effects of Unionization and Occupational Licensing Coverage in the United States,"
464, U.S. Bureau of Labor Statistics.
- Maury Gittleman & Morris M. Kleiner, 2013. "Wage Effects of Unionization and Occupational Licensing Coverage in the United States," NBER Working Papers 19061, National Bureau of Economic Research, Inc.
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 references are entirely missing, you can add them using this form.