Unionized firms are more profitable than nonunion firms and more profitable subsequent to unionization.

Question

Quizplus · Accepted Answer

Research shows mixed results on the impact of unionization on firm profitability. Some studies suggest that unionized firms may experience higher labor costs, which can negatively affect profitability. However, other studies indicate that unionization can lead to higher productivity and lower turnover, which might offset the higher costs. Overall, there is no clear consensus that unionized firms are more profitable than nonunion firms or become more profitable after unionization.

Unionized Firms Are More Profitable Than Nonunion Firms and More