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Length of service and layoffs in union and nonunion work groups

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Author Info

  • Katharine G. Abraham
  • James L. Medoff

Abstract

This paper presents survey evidence from about 200 firms that protection against job loss grows with employees' length of service even after controlling for the perceived net value of employees to the firm. As would be expected, senior workers are better protected against permanent layoff in union than in nonunion firms, but even in the absence of unionism, longer service generally translates into extra protection. Among the private sector hourly work units outside of agriculture and construction represented in the authors' survey, seniority led to additional protection against job loss in 97% of groups covered by a union contract and in 86% of uncovered groups. Importantly, however, the extra protection was considerably stronger in the average union group than in the average nonunion group. (Abstract courtesy JSTOR.)

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Bibliographic Info

Article provided by ILR Review, Cornell University, ILR School in its journal ILR Review.

Volume (Year): 38 (1984)
Issue (Month): 1 (October)
Pages: 87-97

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Handle: RePEc:ilr:articl:v:38:y:1984:i:1:p:87-97

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Cited by:
  1. Katharine G. Abraham & Susan N. Houseman, 2008. "Removing Barriers to Work for Older Americans," Book chapters authored by Upjohn Institute researchers, in: Timothy J. Bartik & Susan N. Houseman (ed.), A Future of Good Jobs? America's Challenge in the Global Economy, chapter 5, pages 161-202 W.E. Upjohn Institute for Employment Research.
  2. repec:fth:prinin:402 is not listed on IDEAS
  3. repec:cdl:indrel:qt35g487jh is not listed on IDEAS
  4. Henry S. Farber, 1987. "The Decline of Unionization in the United States: What can Be Learned from Recent Experience?," NBER Working Papers 2267, National Bureau of Economic Research, Inc.
  5. Gibbons, Robert & Katz, Lawrence F., 1991. "Layoffs and Lemons," Scholarly Articles 3442782, Harvard University Department of Economics.
  6. repec:fth:prinin:341 is not listed on IDEAS
  7. Farber, Henry S. & Levy, Helen, 2000. "Recent trends in employer-sponsored health insurance coverage: are bad jobs getting worse?," Journal of Health Economics, Elsevier, vol. 19(1), pages 93-119, January.
  8. Henry S. Farber, 1995. "Are Lifetime Jobs Disappearing? Job Duration in the United States: 1973-1993," NBER Working Papers 5014, National Bureau of Economic Research, Inc.
  9. Rodríguez-Planas, Núria, 2004. "Signaling in the Labor Market: New Evidence on Layoffs and Plant Closings," IZA Discussion Papers 1009, Institute for the Study of Labor (IZA).
  10. Reich, Michael, 2012. "The Rising Strength of Management, High Unemployment and Slow Growth: Revisiting Okun’s Law," Institute for Research on Labor and Employment, Working Paper Series qt8sc8s1z1, Institute of Industrial Relations, UC Berkeley.
  11. Vanessa V Tinsley, 2003. "Firms and Layoffs: The Impact of Unionization on Involuntary Job Loss," Working Papers 03-09, Center for Economic Studies, U.S. Census Bureau.
  12. Daniel S. Hamermesh, 1986. "Plant Closings, Labor Demand and the Value of the Firm," NBER Working Papers 1839, National Bureau of Economic Research, Inc.
  13. repec:fth:prinin:384 is not listed on IDEAS

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