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Providing protection or encouraging holdup? The effects of labor unions on innovation. Working Paper (2013)
| Citations: | 1 - 0 self |
BibTeX
@MISC{Bradley13providingprotection,
author = {Daniel Bradley and Incheol Kim and Xuan Tian and Florian Ederer and Paul Laux and Lily Li and Yan Li and Lalitha Naveen and Oleg Rytchkov and Krishnamurthy Subramanian},
title = {Providing protection or encouraging holdup? The effects of labor unions on innovation. Working Paper},
year = {2013}
}
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Abstract
Abstract We examine the impact of unionization on the innovation activities of firms by exploiting a novel database of union elections. Firm innovation output, measured by patent counts and citations, declines significantly after firms elect to unionize and increases significantly for firms that vote to deunionize. To establish causality, we use a regression discontinuity design relying on "locally" exogenous variation in unionization generated by union elections that pass or fail by a small margin of votes. The market reaction to firms that elect to unionize is negatively related to firms' past innovation output. Our evidence suggests unionization stifles innovation.
