Study: Unions are Bad for Economic Growth

Yet the White House want to increase their influence.

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President Obama is a big fan of unions. He should read this interesting study out of Princeton and UC Berkeley concerning the effect  unionization has on corporate performance:

We estimate the effect of new unionization on the equity value of firms over the 1961-1999 period using a newly available sample of National Labor Relations Board (NLRB) representation elections matched to stock market data.  ...  Event-study estimates using both close and large victories, however, show that new unionization is associated with at least -10% abnormal returns, equivalent to $40,500 per unionized worker. ... An examination of the balance sheets and income statements of both sets of firms reveals that union wins are associated with relatively lower growth ...