Unions and profitability: a meta-analysis

Doucouliagos, Chris and Laroche, Patrice 2007, Unions and profitability: a meta-analysis, Deakin University, School of Accounting, Economics and Finance, Geelong, Vic..

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Title Unions and profitability: a meta-analysis
Author(s) Doucouliagos, ChrisORCID iD for Doucouliagos, Chris orcid.org/0000-0001-5269-3556
Laroche, Patrice
Publication date 2007-10-10
Series School Working Paper - Economic Series ; SWP 2007/01
Total pages 30
Publisher Deakin University, School of Accounting, Economics and Finance
Place of publication Geelong, Vic.
Keyword(s) RePEc:dkn:econwp:eco_2007_01
Summary The effect of unions on profits continues to be an unresolved empirical issue. In this paper, meta-regression analysis is applied to the population of 45 econometric studies that report 532 estimates of the direct effect of unions on profits. We show that unions have a significant negative effect on profits, and that this effect is larger in the US. Separate meta-regression analysis is used to identify the sources of union-profit effects. Meta-analysis of 239 estimates of unions interacted with the hypothesized sources of union rents reveals that neither the market power nor the quasi-rent appropriation theories are supported by the extant studies. Analysis of the between-study heterogeneity reveals that unions have an indirect effect on factor accumulation – they depress physical capital formation and stimulate advertising expenditure. There is a clear need for additional primary research in this area.
Notes This working paper was later published in the journal ' Industrial Relations : a Journal of Economy and Society' and is available online: http://dx.doi.org/10.1111/j.1468-232X.2008.00549.x
Language eng
HERDC Research category CN.1 Other journal article
Related work DU:30018452
Persistent URL http://hdl.handle.net/10536/DRO/DU:30078004

Document type: Report
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