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LABOR LAWS AND CORPORATE INVESTMENT
Author(s) -
Marciukaityte Dalia
Publication year - 2019
Publication title -
journal of financial research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.319
H-Index - 49
eISSN - 1475-6803
pISSN - 0270-2592
DOI - 10.1111/jfir.12179
Subject(s) - regression discontinuity design , certification , point (geometry) , investment (military) , work (physics) , labour economics , capital (architecture) , business , economics , law , political science , engineering , management , geography , medicine , mechanical engineering , geometry , politics , mathematics , archaeology , pathology
In the United States, the costs of unionized labor are higher in states without right‐to‐work (RTW) laws. I show that unionized firms located in these states invest less. These firms have about 4 percentage point lower capital expenditures (normalized by net property, plant, and equipment) than other firms. I confirm these findings by examining a natural experiment created by the adoption of RTW laws in Oklahoma and examining union certification elections using regression discontinuity design.