Labor Policy and Investment
Policy debates over proposed legislative labor policy changes include contentions that business investment will negatively respond to labor laws that favor labor. Research on labor policy, however, often assumes that investment is fixed. We present a sequential bargaining model in which labor policies that increase labor's bargaining power and reduce management's options during strikes are predicted to reduce investment. Using provincial data on investment for 1967 to 1999, a strike replacement ban and protections for workers who refuse to handle struck work are estimated to reduce new investment, especially within the first few years after the policy change.
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- Denny, Kevin & Nickell, Stephen J, 1992.
"Unions and Investment in British Industry,"
Royal Economic Society, vol. 102(413), pages 874-87, July.
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"Investment and Union Certification,"
Journal of Labor Economics,
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- Peter C. Cramton & Morley Gunderson & Joseph S. Tracy, 1995.
"The Effect of Collective Bargaining Legislation on Strikes and Wages,"
NBER Working Papers
5105, National Bureau of Economic Research, Inc.
- Peter Cramton & Morley Gunderson & Joseph Tracy, 1999. "The Effect Of Collective Bargaining Legislation On Strikes And Wages," The Review of Economics and Statistics, MIT Press, vol. 81(3), pages 475-487, August.
- Peter Cramton & Morley Gunderson & Joseph Tracy, 1999. "The Effect of Collective Bargaining Legislation on Strikes and Wages," Papers of Peter Cramton 99res, University of Maryland, Department of Economics - Peter Cramton, revised 30 Jul 1998.
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"The effect of strike replacement legislation on employment,"
Elsevier, vol. 7(2), pages 225-247, March.
- Budd, J.W., 1995. "The Effect of Strike Replacement Legislation of Employment," Papers 95-04, Minnesota - Industrial Relations Center.
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- Henry C. Simons, 1944. "Some Reflections on Syndicalism," Journal of Political Economy, University of Chicago Press, vol. 52, pages 1.
- Cameron W. Odgers & Julian R. Betts, 1997. "Do Unions Reduce Investment? Evidence from Canada," ILR Review, Cornell University, ILR School, vol. 51(1), pages 18-36, October.
- Baldwin, Carliss Y, 1983. "Productivity and Labor Unions: An Application of the Theory of Self-Enforcing Contracts," The Journal of Business, University of Chicago Press, vol. 56(2), pages 155-85, April.
- Cameron W. Odgers & Julian R. Betts, 1997. "Do unions reduce investment? Evidence from Canada," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 51(1), pages 18-36, October.
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