LABOR LAWS AND CORPORATE INVESTMENT

Dalia Marciukaityte

Journal of Financial Research, 2019, vol. 42, issue 2, 413-444

Abstract: In the United States, the costs of unionized labor are higher in states without right‐to‐work (RTW) laws. I show that unionized firms located in these states invest less. These firms have about 4 percentage point lower capital expenditures (normalized by net property, plant, and equipment) than other firms. I confirm these findings by examining a natural experiment created by the adoption of RTW laws in Oklahoma and examining union certification elections using regression discontinuity design.

Date: 2019
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