Unionization and plant closure in Canada

Tony Fang and John Heywood

Canadian Journal of Economics, 2006, vol. 39, issue 4, 1173-1194

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.

Date: 2006
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