Investment and Union Certification

Bruce Fallick () and Kevin Allen Hassett ()

Journal of Labor Economics, 1999, vol. 17, issue 3, pages 570-82

Abstract: Using data on union certification elections, the authors estimate the impact of unionization on firms' investment behavior. Employing both a standard q model and an 'investment surprises' technique, they find that union certification significantly reduces investment in the year following the election. The authors find that a winning certification election has, on average, about the same effect on investment in the year following the event as would--given the elasticity measures taken from the public finance literature--a 33 percentage-point increase in the corporate tax. The magnitude of the response in years further away from the election is less certain. Copyright 1999 by University of Chicago Press.

Date: 1999
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Working Paper: Investment and union certification (1996)
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