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Effects of Labor Legislation and Industry Characteristics on Union Coverage in Canada

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  • Felice Martinello
  • Ronald Meng

Abstract

The authors investigate the determinants of union coverage using 1986 cross-section data on Canadian workers. Larger firm size, larger establishment size, and higher injury rates increase the probability of union coverage. Industry concentration, import penetration, and the substitutability of labor do not affect coverage through their impact on the union-nonunion wage differential, but concentration increases the probability of coverage through a mechanism unrelated to the wage differential. Mandatory checkoff provisions increase the probability of coverage, but the estimated effect is barely significant. Restrictions on replacement workers and interprovincial differences in automatic certification provisions have statistically insignificant effects. Finally, the results are sensitive to treating some industry characteristics as endogenous (that is, jointly determined with union coverage and union and nonunion wages)—a treatment not used in other studies.

Suggested Citation

  • Felice Martinello & Ronald Meng, 1992. "Effects of Labor Legislation and Industry Characteristics on Union Coverage in Canada," ILR Review, Cornell University, ILR School, vol. 46(1), pages 176-190, October.
    • Handle: RePEc:sae:ilrrev:v:46:y:1992:i:1:p:176-190
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    Citations

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    Cited by:

    1. Susan Johnson, 1999. "Automatic Certification or Mandatory Representation Votes? How the choice of union recogntion procedure affects union certification success," Department of Economics Working Papers 1999-06, McMaster University.
    2. S Johnson, 1999. "Automatic Certification or Mandatory Representation Votes? How the Choice of Union Recognition Procedure Affects Union Certification Success," Working Papers wp139, Centre for Business Research, University of Cambridge.
    3. Susan Johnson, 2002. "Card Check or Mandatory Representation Vote? How the Type of Union Recognition Procedure Affects Union Certification Success," Economic Journal, Royal Economic Society, vol. 112(479), pages 344-361, April.
    4. Toke Aidt & Zafiris Tzannatos, 2002. "Unions and Collective Bargaining : Economic Effects in a Global Environment," World Bank Publications - Books, The World Bank Group, number 15241, December.
    5. Susan Johnson, "undated". "Automatic Certification or Mandatory Representation Votes? How the choice of union recognition procedure affects union certification success," Canadian International Labour Network Working Papers 33, McMaster University.
    6. Budd, John W., 2000. "The effect of strike replacement legislation on employment," Labour Economics, Elsevier, vol. 7(2), pages 225-247, March.
    7. Stéphanie Lluis, 2009. "The Structure of Wages by Firm Size: A Comparison of Canada and the USA," LABOUR, CEIS, vol. 23(2), pages 283-317, June.
    8. Scott Legree & Tammy Schirle & Mikal Skuterud, 2017. "The Effect of Labor Relations Laws on Unionization Rates within the Labor Force: Evidence from the Canadian Provinces," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 56(4), pages 605-639, October.
    9. Stephanie Lluis, "undated". "Endogenous Choice of Firm Size and the Sturcture of Wages: A Comparison of Canada and the United States," Working Papers 0203, Human Resources and Labor Studies, University of Minnesota (Twin Cities Campus).
    10. Chris Riddell, 2004. "Union Certification Success under Voting versus Card-Check Procedures: Evidence from British Columbia, 1978–1998," ILR Review, Cornell University, ILR School, vol. 57(4), pages 493-517, July.

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