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Employment and Unemployment Effects of Unions

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  • Montgomery, Edward
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    Abstract

    Despite an extensive literature examining the effects of unions on wages, little attention has been paid to the resultant aggregate employment consequences of this change in the relative cost of unionized labor. This article uses 1983 Current Population Survey data to estimate the effects of union strength on the probability of employment and labor-force participation. Union strength, which reflects both union coverage and the union wage differential, is found to decrease employment and increase unemployment by a small, but significant, amount. These effects are concentrated primarily among females and young males, while little impact is found on prime-age males. Copyright 1989 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): 7 (1989)
    Issue (Month): 2 (April)
    Pages: 170-90

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    Handle: RePEc:ucp:jlabec:v:7:y:1989:i:2:p:170-90

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    Web page: http://www.journals.uchicago.edu/JOLE/

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    Cited by:
    1. Lu, Yi & Tao, Zhigang & Wang, Yijiang, 2010. "Union effects on performance and employment relations: Evidence from China," China Economic Review, Elsevier, vol. 21(1), pages 202-210, March.
    2. John T. Addison & Paulino Teixeira, 2005. "The Effect of Works Councils on Employment Change," GEMF Working Papers 2005-06, GEMF - Faculdade de Economia, Universidade de Coimbra.
    3. David Neumark & Michael L. Wachter, 1992. "Union Threat Effects and Nonunion Industry Wage Differentials," NBER Working Papers 4046, National Bureau of Economic Research, Inc.
    4. Addison, John T. & Teixeira, Paulino, 2004. "The Effect of Worker Representation on Employment Behavior in Germany: Another Case of -2.5%," IZA Discussion Papers 1188, Institute for the Study of Labor (IZA).

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