The impact of unionization on the entry of firms: Evidence from U.S. industries |
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| Authors: | William F. Chappell Mwangi S. Kimenyi Walter J. Mayer |
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| Affiliation: | (1) University of Mississippi, 38677 University, MS;(2) The University of Connecticut, 06269 Storrs, CT |
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| Abstract: | Traditional models of entry-deterrence typically emphasize sunk costs or predatory pricing, but unionization might also discourage potential entrants. This paper explores this possibility through an empirical model of entry that includes unionization as an explanatory variable. We find that unionization has a statistically significant entry-deterring effect. |
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