Organised Labour, Labour Market Imperfections, and Employer Wage Premia

How Do Firms Respond to Unions?

“…For example,Lee and Mas (2012) finds a negative effect on the equity value of firms using representation elections in the US matched with stock market data;Sojourner et al (2015) find suggestive evidence of productivity gains of unionization using data from nursing homes in the US; DiNardo andLee (2004) find little evidence of productivity changes by examining output effects of close representation elections in the US, andBarth et al (2020) find suggestive productivity gains in Norway using a similar setup to us Dobbelaere et al (2020). examine the relationship between their estimated labor markdowns and the presence of collective bargaining and works councils in German manufacturing and service plants.…”