Weaker incentives in unionized plants make them more likely to close

Weaker incentives in unionized plants make them more likely to close

Unionized plants have worse incentive alignment: 26% less likely to offer performance-based bonuses.  11% less likely to promote based on performance  13% less likely to dismiss workers for poor performance.  Consequently, unionized plants have:  Higher rates of business closures,  lower investment  slower employment growth  BOTTOM LINE:  right-to-work states (no unions) have higher employment and better outcomes. CITE:Maksimovic, Vojislav and… …