Unions and Firm Profits

This study examines the effect of unionization on manufacturing firm profits, extending earlier research by combining industry‐level and firm‐level measures of unionization. Using several profit measures, we find that quasi‐rents from firm investments in intangible assets are a relatively greater source of union profit effects than product market concentration and that union profit effects occur largely in the first 10 percent of firm coverage, suggesting spillover effects on nonunion employees.