Which one of the following research findings is most consistent with the hypothesis that unions increase productivity?
A) Other things equal, firm profits are lower where unions are present.
B) Union workers receive, on average, higher fringe benefits relative to wages than nonunion workers.
C) The average amount of work time lost annually to strikes is surprisingly small.
D) Labor turnover is less in unionized firms than in nonunionized firms.

Question

Quizplus · Accepted Answer

Labor turnover refers to the number of employees leaving a firm and being replaced over a period of time. Lower labor turnover indicates greater stability and continuity in a firm's workforce, which can lead to higher productivity. Therefore, if labor turnover is less in unionized firms than nonunionized firms, it supports the hypothesis that unions increase productivity. A, B, and C are not consistent with the hypothesis that unions increase productivity.

Which One of the Following Research Findings Is Most Consistent