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The effects of unions on research and development: an empirical analysis using multi-year data

Author

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  • Julian R. Betts
  • Cameron W. Odgers
  • Michael K. Wilson

Abstract

A link between unionization and research and development rates (research and development expenditures divided by output) is tested for in thirteen aggregate Canadian industries. A balanced panel of thirteen industries covering 1968 to 1986 reveals a negative relationship between industry unionization rates and research and development. The results hold when a number of techniques are used to control for unobserved industry heterogeneity and non-linear responses to unionization. In an industry that moves from the 25th to the 75th percentile of unionization, research and development is predicted to fall by about 40 per cent.

Suggested Citation

  • Julian R. Betts & Cameron W. Odgers & Michael K. Wilson, 2001. "The effects of unions on research and development: an empirical analysis using multi-year data," Canadian Journal of Economics, Canadian Economics Association, vol. 34(3), pages 785-806, August.
    • Handle: RePEc:cje:issued:v:34:y:2001:i:3:p:785-806
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    Citations

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    Cited by:

    1. Cetrulo, Armanda & Cirillo, Valeria & Landini, Fabio, 2022. "Organized Labour and R&D: Evidence from Italy," GLO Discussion Paper Series 1195, Global Labor Organization (GLO).
    2. Dongphil Chun & Yanghon Chung & Chungwon Woo & Hangyeol Seo & Hyesoo Ko, 2015. "Labor Union Effects on Innovation and Commercialization Productivity: An Integrated Propensity Score Matching and Two-Stage Data Envelopment Analysis," Sustainability, MDPI, vol. 7(5), pages 1-19, April.
    3. Chuluun, Tuugi & Prevost, Andrew & Upadhyay, Arun, 2017. "Firm network structure and innovation," Journal of Corporate Finance, Elsevier, vol. 44(C), pages 193-214.
    4. Barry T. Hirsch, 2012. "Unions, dynamism, and economic performance," Chapters, in: Cynthia L. Estlund & Michael L. Wachter (ed.), Research Handbook on the Economics of Labor and Employment Law, chapter 4, pages 107-145, Edward Elgar Publishing.
    5. Tony Fang & John S. Heywood, 2006. "Unionization and plant closure in Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 39(4), pages 1173-1194, November.
    6. Palokangas, Tapio K., 2005. "Economic Integration, Market Power and Technological Change," IZA Discussion Papers 1592, Institute of Labor Economics (IZA).
    7. Fang, Tony & Ge, Ying, 2012. "Unions and firm innovation in China: Synergy or strife?," China Economic Review, Elsevier, vol. 23(1), pages 170-180.
    8. Ilhang Shin & Sorah Park & Seong Pyo Cho & Seungho Choi, 2020. "The effect of labor unions on innovation and market valuation in business group affiliations: new evidence from South Korea," Asian Business & Management, Palgrave Macmillan, vol. 19(2), pages 239-270, April.
    9. Mei Xue & Yu Zhou & Zhouhao Liu, 2022. "The Effect of Labor Protection on Firms’ Operational Efficiency: Evidence from China’s Labor Contract Law Implementation," Sustainability, MDPI, vol. 14(9), pages 1-17, May.

    More about this item

    JEL classification:

    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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