Organized Labor and Strategic Disclosure through Online Job Postings

Abstract

This study examines whether and how unionized employers use online job postings as a strategic disclosure tool to mitigate the bargaining power of labor unions. Utilizing difference-in-differences analyses, we find that unionized employers strategically reduce the level of online job postings during labor negotiations. Cross-sectional tests suggest that these firms' reduction in the level of job postings during labor negotiations is more pronounced when firms face higher product market competition, when they have greater labor intensity, and when they exhibit higher growth. Further, such strategic disclosure behavior concentrates in the three quarters leading up to the effective dates of collective bargaining agreements. Corroborating evidence suggests that unionized employers also provide fewer specific job postings during labor negotiations. Overall, our study provides evidence that firms strategically communicate with incumbent employees through online job postings.