The Effect of Unions on Labor Markets and Economic Growth: An Analysis of State Data
Abstract
Despite voluminous research on unions, there still is no consensus on how unions affect a state's economy. Using a panel of 48 U.S. states for the 1978-1994 period, we estimate a series of simultaneous equations to analyze how unions affect various economic barometers. This provides measures for the partial correlations between unions and performance. The model is then re-estimated using regional dummies to capture fixed effects and to highlight regional differences in the slope of the Phillips curve. We find that unions adversely affect unemployment rates and the growth rates of gross state product (GSP), productivity, and population, while increasing the rate of wage inflation. The impact on the employment growth rate is negative but not significant. A test for fixed effects reveals regional differences in GSP growth. Regional differences in population growth are not significant. Also, the slope of the Phillips curve is significantly different across regions.Download Info
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Bibliographic Info
Article provided by Transaction Publishers in its journal Journal of Labor Research.
Volume (Year): 22 (2001)
Issue (Month): 1 (January)
Pages: 195-205
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Web page: http://transactionpub.metapress.com/link.asp?target=journal&id=110581
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Kelly Edmiston, 2005.
"Worker's compensation and state employment growth,"
Community Affairs Research Working Paper
2005-04, Federal Reserve Bank of Kansas City.
- Kelly D. Edmiston, 2006. "Workers' Compensation and State Employment Growth," Journal of Regional Science, Wiley Blackwell, vol. 46(1), pages 121-145.
- Louis J. Pantuosco & Darrell Parker, 2005. "The Determinants of Shirking: Analysis and Evidence on Job Loser Unemployment," Eastern Economic Journal, Eastern Economic Association, vol. 31(1), pages 7-21, Winter.
- Chris Doucouliagos & Patrice Laroche, 2002. "Unions and productivity growth: a meta-analytic review," Cahiers du CEREFIGE 0202, CEREFIGE (Centre Europeen de Recherche en Economie Financiere et Gestion des Entreprises), Universite Nancy 2 - Metz, revised 2002.
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