Unionization and Acquisitions

Abstract

This article explores the question of whether unionization influences the decision of a firm to merge with another firm. We combine merger data, taken from COMPUSTAT, with firm-specific union data obtained from several sources. An econometric matching model allows us to isolate the effects of unionization on the probability that the firms studied will be involved in a merger. We find that unionization increases the likelihood that a firm will enter the acquisition market and that firms with similar union statuses tend to merge with one another.

JEL Classification: G34