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Vulnerable Seniors: Unions, Tenure, and Wages Following Permanent Job Loss

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  • Kuhn, Peter
  • Sweetman, Arthur

Abstract

In contrast to nonunion workers, reemployment wages of workers displaced from unionized jobs decline with tenure on the lost job. This finding cannot easily be explained by firm- or industry-specific human capital accumulation, deferred-pay policies, standard matching models, or a correlation between tenure and reentry rates into unionized jobs. Possible explanations include negative selection of senior union workers and a negative causal effect of unionism on workers' alternative skills. Despite a much flatter predisplacement tenure-wage profile, displaced union workers' wage losses increase with tenure at a rate comparable to or higher than those of nonunion workers. Copyright 1999 by University of Chicago Press.

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Bibliographic Info

Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 17 (1999)
Issue (Month): 4 (October)
Pages: 671-93

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Handle: RePEc:ucp:jlabec:v:17:y:1999:i:4:p:671-93

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Citations

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Cited by:
  1. Peter Haan & Michal Myck, 2009. "Dynamics of Poor Health and Non-employment," SOEPpapers on Multidisciplinary Panel Data Research 195, DIW Berlin, The German Socio-Economic Panel (SOEP).
  2. Christopher J. O'Leary & Randall W. Eberts, 2007. "Reemployment and Earnings Recovery among Older Unemployment Insurance Claimants," Upjohn Working Papers and Journal Articles 07-133, W.E. Upjohn Institute for Employment Research.
  3. Anja Deelen, 2011. "Wage-Tenure Profiles and Mobility," CPB Discussion Paper 198, CPB Netherlands Bureau for Economic Policy Analysis.
  4. Centeno, Mário & Corrêa, Márcio, 2010. "Job matching, technological progress, and worker-provided on-the-job training," Economics Letters, Elsevier, vol. 109(3), pages 190-192, December.
  5. David Green & Thomas Lemieux, 2007. "The impact of unionization on the incidence of and sources of payment for training in Canada," Empirical Economics, Springer, vol. 32(2), pages 465-489, May.
  6. Daniel van Vuuren & Paul de Hek, 2010. "Are older workers overpaid? A literature review," CPB Discussion Paper 165, CPB Netherlands Bureau for Economic Policy Analysis.
  7. Till von Wachter & Elizabeth Handwerker & Andrew Hildreth, 2009. "Estimating the "True" Cost of Job Loss: Evidence Using Matched Data from Califormia 1991-2000," Working Papers 09-14, Center for Economic Studies, U.S. Census Bureau.
  8. Nicholas Lawson, 2011. "Is Collective Bargaining Pareto Efficient? A Survey of the Literature," Journal of Labor Research, Springer, vol. 32(3), pages 282-304, September.

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