Abstract

http://ssrn.com/abstract=3652
 
 

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Investment and Union Certification


Bruce Fallick


Federal Reserve Board - Research & Statistics

Kevin A. Hassett


American Enterprise Institute (AEI)

May 1996

Board of Governors of the Federal Reserve System Finance and Econ. Disc. Series 96-43

Abstract:     
A growing body of work--both theoretical and empirical--has emphasized that unionization may be better understood as a tax on capital rather than a tax on labor. Under this "new" view, unionization unambiguously lowers investment. Using data on union certification elections, we estimate the impact of unionization on firms' investment behavior. Employing both a standard q-model and an "investment surprises" technique, we find that union certification significantly reduces investment. We find that a winning certification election has, on average, about the same effect on investment as would a 30 percentage point increase in the corporate tax.

JEL Classification: J51, D24

working papers series


Not Available For Download

Date posted: December 11, 1996  

Suggested Citation

Fallick, Bruce and Hassett, Kevin A., Investment and Union Certification (May 1996). Board of Governors of the Federal Reserve System Finance and Econ. Disc. Series 96-43. Available at SSRN: http://ssrn.com/abstract=3652

Contact Information

Bruce C. Fallick (Contact Author)
Federal Reserve Board - Research & Statistics ( email )
20th and C Streets, NW
Mailstop 80
Washington, DC 20551
United States
202-452-3722 (Phone)
202-872-4927 (Fax)
Kevin A. Hassett
American Enterprise Institute (AEI) ( email )
1150 17th Street, N.W.
Washington, DC 20036
United States
202.862.7157 (Phone)
202.862.7177 (Fax)
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