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

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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. JEL Classification: J51 Les effets des syndicats sur l'intensité de la recherche et développement: une analyse empirique sur plusieurs années. Ce mémoire examine le lien entre le degré de syndicalisation et les taux de dépenses en recherche et développement en proportion de la production dans treize industries canadiennes. Pour ces treize secteurs industriels, entre 1968 et 1986, il semble qu'il y ait une relation négative entre les taux de syndicalisation et les taux de dépenses en recherche et développement. Ces résultats sont robustesmême quand on utilise des techniques pour tenir compte de l'hétérogéneité des secteurs et des réponses non linéaires à la syndicalisation. Pour une industrie qui voit son taux de syndicalisation passer du 25e au 75e percentile, on prévoit une chute de 40% dans la recherche et développement.

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/Revue canadienne d'économique, John Wiley & Sons, vol. 34(3), pages 785-806, August.
    • Handle: RePEc:wly:canjec:v:34:y:2001:i:3:p:785-806
    DOI: 10.1111/0008-4085.00099
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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. 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.
    4. 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.
    5. Palokangas, Tapio K., 2005. "Economic Integration, Market Power and Technological Change," IZA Discussion Papers 1592, Institute of Labor Economics (IZA).
    6. Fang, Tony & Ge, Ying, 2012. "Unions and firm innovation in China: Synergy or strife?," China Economic Review, Elsevier, vol. 23(1), pages 170-180.
    7. 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.
    8. 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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