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Unionization and plant closure in Canada

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  • Tony Fang
  • John S. Heywood

Abstract

This paper examines for the first time the role of unionization as a determinant of plant closings in Canada. Using the 1999 to 2001 Canadian Workplace and Employee Survey, the paper contributes to the North American evidence by showing that the share of a plant's workers covered by collective bargaining has a robust positive partial correlation with the probability of larger plants closing. For smaller plants, the extent of unionization tends to be much lower and its variation plays no role in plant closure. The study highlights the theoretical and statistical importance of examining closure separately for large and small plants.

Suggested Citation

  • Tony Fang & John S. Heywood, 2006. "Unionization and plant closure in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 39(4), pages 1173-1194, November.
  • Handle: RePEc:cje:issued:v:39:y:2006:i:4:p:1173-1194
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    Cited by:

    1. David M. Frankel, 2010. "Rent Seeking and Economic Fragility," Levine's Bibliography 661465000000000159, UCLA Department of Economics.
    2. Dinlersoz, Emin & Greenwood, Jeremy, 2016. "The rise and fall of unions in the United States," Journal of Monetary Economics, Elsevier, vol. 83(C), pages 129-146.
    3. Martyn Andrews & Lutz Bellmann & Thorsten Schank & Richard Upward, 2012. "Foreign-owned plants and job security," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 148(1), pages 89-117, April.
    4. Fang, Tony & Ge, Ying, 2012. "Unions and firm innovation in China: Synergy or strife?," China Economic Review, Elsevier, vol. 23(1), pages 170-180.
    5. repec:cen:wpaper:12-12 is not listed on IDEAS

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