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The Impact of New Unionization on Wages and Working Conditions

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  • Freeman, Richard Barry
  • Kleiner, Morris M.

Abstract

This study investigates the impact of union organization on the wages and labor practices of establishments newly organized in the 1980s. It uses a research design in which establishments are "paired" with their closest nonunion competitor. It finds that, unionism had only a modest effect on wages in the newly organized plants, which contrasts sharply with the huge union wage impact found in cross-section comparisons of union and nonunion individuals,but unionism substantially alters several personnel practices, creating grievance systems, greater seniority protection, and job bidding and posting. That newly organized establishments adopt union working conditions but grant only modest wage increases suggests that "collective voice" rather than monopoly wage gains is the key to understanding new unionism.

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File URL: http://dash.harvard.edu/bitstream/handle/1/4632238/Freeman_ImpactNew.pdf
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Bibliographic Info

Paper provided by Harvard University Department of Economics in its series Scholarly Articles with number 4632238.

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Date of creation: 1990
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Publication status: Published in Journal of Labor Economics
Handle: RePEc:hrv:faseco:4632238

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References

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  1. Richard B. Freeman, 1981. "The effect of unionism on fringe benefits," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 34(4), pages 489-509, July.
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Cited by:
  1. Douglas L. Kruse & Joseph R. Blasi & Rhokeun Park, 2008. "Shared Capitalism in the U.S. Economy? Prevalence, Characteristics, and Employee Views of Financial Participation in Enterprises," NBER Working Papers 14225, National Bureau of Economic Research, Inc.
  2. Carlos Casacuberta & Gabriela Fachola & Nestor Gandelman, 2004. "The impact of trade liberalization on employment, capital, and productivity dynamics: evidence from the uruguayan manufacturing sector," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 7(4), pages 225-248.
  3. Michele Campolieti & Rafael Gomez & Morley Gunderson, 2013. "Managerial Hostility and Attitudes Towards Unions: A Canada-US Comparison," Journal of Labor Research, Springer, vol. 34(1), pages 99-119, March.
  4. John DiNardo & David S. Lee, 2002. "The Impact of Unionization on Establishment Closure: A Regression Discontinuity Analysis of Representation Elections," NBER Working Papers 8993, National Bureau of Economic Research, Inc.
  5. Morris M. Kleiner, 2000. "Occupational Licensing," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 189-202, Fall.
  6. Ruiz-Verdu, Pablo, 2007. "The economics of union organization: Efficiency, information and profitability," Labour Economics, Elsevier, vol. 14(5), pages 848-868, October.
  7. repec:fth:prinin:349 is not listed on IDEAS
  8. Jo Blanden & Stephen Machin & John Van Reenen, 2005. "New Survey Evidence on Recent Changes in UK Union Recognition," CEP Discussion Papers dp0685, Centre for Economic Performance, LSE.
  9. Morris M. Kleiner & Robert T. Kudrle, 1997. "Does Regulation Affect Economic Outcomes?: The Case of Dentistry," NBER Working Papers 5869, National Bureau of Economic Research, Inc.
  10. Aaron J. Sojourner & Robert J. Town & David C. Grabowski & Michelle M. Chen, 2012. "Impacts of Unionization on Employment, Product Quality and Productivity: Regression Discontinuity Evidence From Nursing Homes," NBER Working Papers 17733, National Bureau of Economic Research, Inc.
  11. Toke Aidt & Zafiris Tzannatos, 2002. "Unions and Collective Bargaining : Economic Effects in a Global Environment," World Bank Publications, The World Bank, number 15241, January.
  12. David Lee & Alexandre Mas, 2009. "Long-Run Impacts of Unions on Firms: New Evidence from Financial Markets, 1961-1999," NBER Working Papers 14709, National Bureau of Economic Research, Inc.
  13. 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.
  14. Alan Krueger & Douglas Kruse, 1995. "Labor Market Effects of Spinal Cord Injuries in the Dawn of the Computer Age," Working Papers 728, Princeton University, Department of Economics, Industrial Relations Section..
  15. Federico Boffa, 2004. "Redistributing through Unions," Labor and Demography 0402002, EconWPA.
  16. Douglas L. Kruse & Joseph R. Blasi & Rhokeun Park, 2010. "Shared Capitalism in the U.S. Economy: Prevalence, Characteristics, and Employee Views of Financial Participation in Enterprises," NBER Chapters, in: Shared Capitalism at Work: Employee Ownership, Profit and Gain Sharing, and Broad-based Stock Options, pages 41-75 National Bureau of Economic Research, Inc.

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