Bankruptcy and the Cost of Organized Labor: Evidence from Union Elections

Arguments that worker unionization leads to changes in productivity, employment, or business survival find little support in the literature. While unionization may have limited impact in good states, unionized workers are entitled to special treatment in bankruptcy court. This shift in bargaining power can be detrimental to other corporate stakeholders in default states, with senior, unsecured creditors standing to lose the most. We gather data …