Labor Union Effects On Innovative Activity
نویسنده
چکیده
Union rent-seeking is considered a tax on f irm returns f rom investments in innovative activity. We examine this proposition by considering the responses o f f irms in a 1985 survey on R&D and product innovation. Consistent with our model, we f ind that innovative activity is significantly less important for union than for similar nonunion firms. We conclude that innovative activity may be an important route through which union rent-seeking affects the long-run performance o f firms.
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