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The Effect of Unionization on Employment Growth of Canadian Companies

Richard J. Long

ILR Review, 1993, vol. 46, issue 4, 691-703

Abstract: This longitudinal analysis of employment in 510 Canadian firms over the period 1980 to 1985 provides evidence that union firms in both the manufacturing and nonmanufacturing sectors experienced substantially slower employment growth than comparable nonunion firms. Controlling for industry sector, firm size, and firm age, the author finds that within the manufacturing sector, union firms grew 3.7% more slowly per year than nonunion firms, and within the nonmanufacturing sector, union firms grew 3.9% more slowly than nonunion firms. Small firms in both sectors, however, appear to have escaped any negative union effect on employment growth. Of the control variables, firm age appears to be much more important than firm size in explaining employment growth.

Date: 1993
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