The Effect of Unionization on the Profitability: The U.S. Manufacturing Firms, 1986-88

Abstract

The impact of unionization on firm profitability is investigated regarding the alternative econometric techniques, the alternative definitions of profit and the alternative measures of unionization. Despite differences in methodology, the findings are consistent with most of previous studies in supporting the hypothesis of a negative union effect on profitability. The results indicate that the size of the negative union effect on profitability differs depending on the measures of profitability and the alternative measures of unionization. (150, JS!)