The Effect of the Union Wage Differential on Management Opposition and Union Organizing Success
AbstractThis paper argues that under current U.S. institutional arrangements, in which managements opposition to unions is as important as workers and unions,the magnitude of the union wage premium actually reduces organization rather than increasing it. It reduces organizing success by lowering profits, thus giving management a greater incentive to oppose unions. It shows that in the traditional monopoly model, any given premium can cause management to donate more resources to opposing a union than workers will donate to organizing. Empirical evidence from NLRB elections supports the model in which larger premiums induce greater opposition and thus reduce union organizing success.
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Bibliographic InfoArticle provided by American Economic Association in its journal American Economic Review.
Volume (Year): 76 (1986)
Issue (Month): 2 (May)
Other versions of this item:
- Richard B. Freeman, 1985. "The Effect of the Union Wage Differential on Management Opposition and Union Organizing Success," NBER Working Papers 1748, National Bureau of Economic Research, Inc.
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- Daniel Maceira & Maria Victoria Murillo, 2001. "Social Sector Reform in Latin America and the Role of Unions," Research Department Publications 4275, Inter-American Development Bank, Research Department.
- David Neumark & Michael L. Wachter, 1992. "Union Threat Effects and Nonunion Industry Wage Differentials," NBER Working Papers 4046, National Bureau of Economic Research, Inc.
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