This study examines how organized labor affects selling, general, and administrative (SG&A) cost behavior. We find that labor cost stickiness is higher for firms facing stronger unions, but the stickiness of SG&A costs is lower. This is consistent with an argument that managers’ discretionary...

This paper estimates the effect of labor-market concentration on labor compensation across the U.S. private sector since 2000. We distinguish between concentration in local labor markets versus local product markets, guarding against bias from confounded product-market concentration. Analysis...

This study examines how organized labor affects selling, general, and administrative (SG&A) cost behavior. Human capital is emerging as firms’ most valuable asset, and we further the understanding of the interaction between employees and SG&A cost behavior. We predict and find that labor cost...

This paper provides new evidence on the effect of unionization on cost of bank loans. By using a regression discontinuity design, we establish a causal relation from new unionization to bank loan pricing. Relative to firms in which unions barely lose elections, firms in which unions barely win...