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The Imperfect Union: Labor Racketeering, Corruption Exposure, and Its Consequences

Author

Listed:
  • Miriam Venturini

    (Department of Economics, University of California Riverside)

Abstract
Can exposing corruption have unintended negative consequences? I tackle this question in the context of labor unions in the U.S., where the U.S. Senate McClellan Committee (1957-1960) publicly exposed corruption and organized crime infiltrations in their ranks. Using a difference-in-differences identification strategy and novel data, I examine the consequences of the Committee’s investigation on unionization, the capacity of unions to mobilize voters during elections, and their ability to influence public policy. I study both the direct effects of the investigation in areas where investigated union locals were present and the indirect effects (or spillovers) in areas where no investigated union locals were present. First, I find that the negative spillover effects on unionization were stronger than the direct effects. Second, I show that the investigation caused a persistent decrease in the capacity of unions to foster voters' political participation in presidential elections. Finally, I provide evidence suggesting that the spillovers are at least partially explained by a large-scale news and reputation shock that had negative consequences on the entire American labor movement.

Suggested Citation

  • Miriam Venturini, 2023. "The Imperfect Union: Labor Racketeering, Corruption Exposure, and Its Consequences," Working Papers 202407, University of California at Riverside, Department of Economics.
    • Handle: RePEc:ucr:wpaper:202407
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    File URL: https://economics.ucr.edu/repec/ucr/wpaper/202407.pdf
    File Function: First version, 2023
    Download Restriction: no
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    More about this item

    Keywords

    labor unions; corruption; turnout;
    All these keywords.

    JEL classification:

    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • N32 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: 1913-

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