Interstate vs. Interprovincial Differences in Union Density

Union density in Canada is approximately twice that in the United States. The range of densities from high to low states/provinces is much smaller, however: 2:1 in Canada vs. 6:1 in the U.S. After adjusting for differences in industry distribution of employment, this study finds that the major source of interstate and interprovincial differences is private sector density. Most of the low union density states have right-to-work laws, while the greater the comprehensiveness of state bargaining laws, the higher the public sector density. In Canada, where all public and private sector employees have the right to bargain, there is a higher average level of public and private sector densities and a smaller range for both. The more supportive labor legislation in Canada may be associated with the existence of labor-oriented political parties at the provincial level.     

The People in Your Neighborhood: Social Interactions and Mutual Fund Portfolios

We find that socially connected fund managers have more similar holdings and trades. The overlap of funds whose managers reside in the same neighborhood is considerably higher than that of funds whose managers live in the same city but in different neighborhoods. These effects are larger when managers share a similar ethnic background, and are not explained by preferences. Valuable information is transmitted through these peer networks: a long‐short strategy composed of stocks purchased minus sold by neighboring managers delivers positive risk‐adjusted returns. Unlike prior empirical work, our tests disentangle the effects of social interactions from community effects.