TY - JOUR
T1 - Do unions make enterprises insolvent?
AU - Freeman, Richard B.
AU - Kleiner, Morris M
PY - 1999/7
Y1 - 1999/7
N2 - This study investigates the impact of unionization on closures of firms, business lines, and establishments. Analyzing data from two major data sets - one (from the COMPUSTAT files) on the union status of solvent and insolvent enterprises and business lines, and one (obtained by matching files from the Current Population Survey) on the union status of workers who have lost their jobs due to permanent plant closures or business failures - the authors find little support for the hypothesis that unionization increases the insolvency of firms. The results are consistent with the hypothesis that unions behave in an economically rational manner, pushing wages to the point where union firms may expand less rapidly than nonunion firms, but not to the point where the firm, plant, or business line closes down.
AB - This study investigates the impact of unionization on closures of firms, business lines, and establishments. Analyzing data from two major data sets - one (from the COMPUSTAT files) on the union status of solvent and insolvent enterprises and business lines, and one (obtained by matching files from the Current Population Survey) on the union status of workers who have lost their jobs due to permanent plant closures or business failures - the authors find little support for the hypothesis that unionization increases the insolvency of firms. The results are consistent with the hypothesis that unions behave in an economically rational manner, pushing wages to the point where union firms may expand less rapidly than nonunion firms, but not to the point where the firm, plant, or business line closes down.
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U2 - 10.1177/001979399905200401
DO - 10.1177/001979399905200401
M3 - Article
AN - SCOPUS:0001380006
SN - 0019-7939
VL - 52
SP - 510
EP - 527
JO - Industrial and Labor Relations Review
JF - Industrial and Labor Relations Review
IS - 4
ER -