Chapter 11 bankruptcy and the termination of collective bargaining contracts

In 1984 the Supreme Court ruled that employers can unilaterally break an existing collective bargaining contract upon filing a chapter 11 bankruptcy petition. This ruling changed both the contractual responsibilities of the employer to honor the collective bargaining agreement and the rights that workers have under the National Labor Relations Act. The purpose of this article is to show the conditions under which a Chapter 11 bankruptcy proceeding will lead to the termination of a labor contract. Our results suggest that (a) legal rulings that reduce the costs of bankruptcy will increase the number of contractual dissolutions and (b) a Chapter 11 bankruptcy is more likely to occur when a firm operates in a climate of uncertain expectations.     

Race, Financial Aid Awards and college Attendance

A bstract . The impact of race on college and university admission and award decisions is examined using data from the National Longitudinal Study of the High School Class of 1972. The effects of race and other factors on the choice of an individual's educational attainment are also studied. Financial aid award equations are estimated. The results indicate that college and university admissions departments have actively worked to encourage the enrollment of African-American students. It appears that the lower average educational attainment of African-Americans is the result of differences in parental income, education , and geographical location.