Investment and union certification
A growing body of work--both theoretical and empirical--has emphasized that unionization may be better understood as a tax on capital rather than a tax on labor. Under this "new" view, unionization unambiguously lowers investment. Using data on union certification elections, we estimate the impact of unionization on firms' investment behavior. Employing both a standard q-model and an "investment surprises" technique, we find that union certification significantly reduces investment. We find that a winning certification election has, on average, about the same effect on investment as would a 30 percentage point increase in the corporate tax.
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- Connolly, Robert A & Hirsch, Barry T & Hirschey, Mark, 1986. "Union Rent Seeking, Intangible Capital, and Market Value of the Firm," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 567-577, November.
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- Voos, Paula B & Mishel, Lawrence R, 1986. "The Union Impact on Profits in the Supermarket Industry," The Review of Economics and Statistics, MIT Press, vol. 68(3), pages 513-517, August.
- Voos, Paula B & Mishel, Lawrence R, 1986. "The Union Impact on Profits: Evidence from Industry Price-Cost Margin Data," Journal of Labor Economics, University of Chicago Press, vol. 4(1), pages 105-133, January.
- Harry G. Johnson & Peter Mieszkowski, 1970. "The Effects of Unionization on the Distribution of Income: A General Equilibrium Approach," The Quarterly Journal of Economics, Oxford University Press, vol. 84(4), pages 539-561.
- Jason G. Cummins & Kevin A. Hassett & R. Glenn Hubbard, 1994. "A Reconsideration of Investment Behavior Using Tax Reforms as Natural Experiments," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 25(2), pages 1-74.
- Fallick, Bruce C & Hassett, Kevin A, 1996.
"Unionization and Acquisitions,"
The Journal of Business,
University of Chicago Press, vol. 69(1), pages 51-73, January.
- Fallick, B.C. & Hassett,K., 1990. "Unionization And Acquisitions," Papers 31, California Los Angeles - Applied Econometrics.
- Bruce C. Fallick & Kevin A. Hassett, 1995. "Unionization and acquisitions," Finance and Economics Discussion Series 95-4, Board of Governors of the Federal Reserve System (U.S.).
- Rose, Nancy L, 1987. "Labor Rent Sharing and Regulation: Evidence from the Trucking Industry," Journal of Political Economy, University of Chicago Press, vol. 95(6), pages 1146-1178, December.
- Bronars, Stephen G & Deere, Donald R, 1993. "Union Organizing Activity, Firm Growth, and the Business Cycle," American Economic Review, American Economic Association, vol. 83(1), pages 203-220, March.
- Denny, Kevin & Nickell, Stephen J, 1992. "Unions and Investment in British Industry," Economic Journal, Royal Economic Society, vol. 102(413), pages 874-887, July.
- Denny, K. & Nickell, S., 1990. "Unions And Investment In British Industry," Economics Series Working Papers 9992, University of Oxford, Department of Economics.
- Barry T. Hirsch & Robert A. Connolly, 1987. "Do Unions Capture Monopoly Profits?," ILR Review, Cornell University, ILR School, vol. 41(1), pages 118-136, October.
- Addison, John T & Hirsch, Barry T, 1989. "Union Effects on Productivity, Profits, and Growth: Has the Long Run Arrived?," Journal of Labor Economics, University of Chicago Press, vol. 7(1), pages 72-105, January.
- Michael A. Salinger, 1984. "Tobin's q, Unionization, and the Concentration-Profits Relationship," RAND Journal of Economics, The RAND Corporation, vol. 15(2), pages 159-170, Summer. Full references (including those not matched with items on IDEAS)
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