EPI: UNIONS DON’T CAUSE FIRM CLOSURES

What’s the real effect of union membership on businesses? A new report by economist John DiNardo of the University of Michigan suggests there’s no connection between a firm’s likeliness to shut down and whether its employees have a union. Released by the Economic Policy Institute (EPI), Still Open for Business looks at research over the past two decades into union membership, wages and firm survival and finds that there’s no evidence to suggest that firms where workers have a union are more likely to go out of business than any other firm. This research provides evidence that this causal effect of union recognition is zero. In short, the biggest fear voiced by employer groups regarding unionization—that it will inevitably drive them out of business—has no evidentiary basis. continue reading