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Do Unions Affect Innovation?, Daniel Bradley, Incheol Kim, Xuan Tian Jul 2017

Do Unions Affect Innovation?, Daniel Bradley, Incheol Kim, Xuan Tian

Finance Faculty Publications and Presentations

We examine the effect of unionization on firm innovation, using a regression discontinuity design that relies on “locally” exogenous variation generated by elections that pass or fail by a small margin of votes. Passing a union election results in an 8.7% (12.5%) decline in patent quantity (quality) three years after the election. A reduction in R&D expenditures, reduced productivity of inventors, and departures of innovative inventors appear to be plausible underlying mechanisms through which unionization impedes firm innovation. In response to unionization, firms move their innovation activities away from states where union elections win. Our paper provides new insights into …


Effects Of Labor Unions On Regional Economic Development In Mexico, Rafael Otero May 1999

Effects Of Labor Unions On Regional Economic Development In Mexico, Rafael Otero

Theses and Dissertations - UTB/UTPA

The purpose of this research is to help determine the net effect of trade unionism in Northern Mexico (Matamoros, Nuevo Laredo, Juárez, and Tijuana). The maquiladora industry is used to empirically test union regional economic effects because there are different union structures along the regions where maquiladora firms are located. The results of the investigation regarding the relative changes in wages in the maquiladora and non-maquiladora sectors for the four cities in the study are consistent with the hypothesis that the real wage growth in a region's maquiladora sector relative to the non-maquiladora sector is associated with the strength of …