The impact of labor unionization on monitoring costs

Chantziaras, A.; Dedoulis, E.; Leventis, S.

Abstract

This paper analyzes the impact of labor unionization on monitoring costs. Our findings show that monitoring costs are significantly higher for unionized firms. We demonstrate that the more complex, industrial relations structures that characterize unionized firms increase monitoring risks and corporate costs. We further show that monitoring agents consider political ideology supportive to labor unions as a parameter that enhances relevant costs. Additionally, we demonstrate that monitoring costs are lower in the presence of employee share ownership. We conclude that labor unionization increases the costs of monitoring agents, a burden which is amplified or mitigated depending on the structure of industrial relations.

Citation

Chantziaras, A., Dedoulis, E., & Leventis, S. (2020). The impact of labor unionization on monitoring costs. European Management Journal, 38(2), 288-307. https://doi.org/10.1016/j.emj.2019.09.004

• Journal Article Type: Article
• Acceptance Date: Sep 24, 2019
• Online Publication Date: Sep 27, 2019
• Publication Date: Apr 30, 2020
• Deposit Date: Jan 9, 2020
• Publicly Available Date: Sep 27, 2021
• Journal: European Management Journal
• Print ISSN: 0263-2373
• Electronic ISSN: 1873-5681
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 38
• Issue: 2
• Pages: 288-307
• DOI: https://doi.org/10.1016/j.emj.2019.09.004
• Public URL: https://durham-repository.worktribe.com/output/1310788