Discussion Paper

New manufacturing investment and unions


Abstract: Despite recent media stories about both labor unions and the potential revitalization of U.S. manufacturing, most current policy discussions about improving business climate to foster manufacturing neglect the role of unions. This, plus the continued decline in U.S. union membership, might lead one to believe that unions matter little for new investment decisions. This essay argues that, in fact, unions remain an extremely significant factor in decisions by U.S. manufacturers about where they will or will not make new investments. Both unions and manufacturing are discussed in an analysis that distinguishes between new investment at new plants and at existing plants.

Access Documents

File(s): File format is application/pdf https://www.minneapolisfed.org/~/media/files/pubs/eppapers/13-2/epp_13-2_unions.pdf
Description: Full text

Authors

Bibliographic Information

Provider: Federal Reserve Bank of Minneapolis

Part of Series: Economic Policy Paper

Publication Date: 2013

Number: 13-2