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Why So Unhappy? The Effects of Unionisation on Job Satisfaction

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Author Info

  • Bryson, Alex

    () (National Institute of Economic and Social Research (NIESR))

  • Cappellari, Lorenzo

    () (Università Cattolica del Sacro Cuore)

  • Lucifora, Claudio

    () (Università Cattolica del Sacro Cuore)

Abstract

We use linked employer-employee data to investigate the job satisfaction effect of unionisation in Britain. We depart from previous studies by developing a model that simultaneously controls for the endogeneity of union membership and union recognition. We show that a negative association between membership and satisfaction only emerges where there is a union recognised for bargaining, and that such an effect vanishes when the simultaneous selection into membership and recognition is taken into account. We also show that ignoring endogenous recognition would lead to conclude that membership has a positive effect on satisfaction. Our estimates indicate that the unobserved factors that lead to sorting across workplaces are negatively related to the ones determining membership and positively related with those generating satisfaction, a result that we interpret as being consistent with the existence of queues for union jobs.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1498.

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Length: 29 pages
Date of creation: Feb 2005
Date of revision:
Publication status: published in: Oxford Bulletin of Economics and Statistics, 2010, 72 (3), 357-380
Handle: RePEc:iza:izadps:dp1498

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Keywords: job satisfaction; union membership; union recognition; endogeneity;

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References

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  1. Booth, Alison L & Bryan, Mark L, 2001. "The Union Membership Wage Premium Puzzle: Is There A Free-Rider Problem?," CEPR Discussion Papers 2879, C.E.P.R. Discussion Papers.
  2. Keith A. Bender & Peter J. Sloane, 1998. "Job satisfaction, trade unions, and exit-voice revisited," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 51(2), pages 222-240, January.
  3. Andrew Clark, . "Job Satisfaction and Gender. Why are Women so Happy at Work?," Economics Discussion Papers 415, University of Essex, Department of Economics.
  4. John M. Abowd & Henry S. Farber, 1982. "Job queues and the union status of workers," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 35(3), pages 354-367, April.
  5. Dan A. Black & Jeffrey Smith, 2003. "How Robust is the Evidence on the Effects of College Quality? Evidence From Matching," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers 20033, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
  6. Alex Bryson & Lorenzo Cappellari & Claudio Lucifora, 2003. "Does Union Membership Really Reduce Job Satisfaction?," CEP Discussion Papers dp0569, Centre for Economic Performance, LSE.
  7. John S. Heywood & W. S. Siebert & Xiangdong Wei, 2002. "Worker sorting and job satisfaction: The case of union and government jobs," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 55(4), pages 595-609, July.
  8. Alex Bryson & Rafael Gomez, 2003. "Segmentation, Switching Costs and the Demand for Unionization in Britain," CEP Discussion Papers dp0568, Centre for Economic Performance, LSE.
  9. Michael E. Gordon & Angelo S. Denisi, 1995. "A re-examination of the relationship between union membership and job satisfaction," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 48(2), pages 222-236, January.
  10. Joni Hersch & Joe A. Stone, 1990. "Is Union Job Dissatisfaction Real?," Journal of Human Resources, University of Wisconsin Press, vol. 25(4).
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Cited by:
  1. repec:lan:wpaper:2914 is not listed on IDEAS
  2. Haile, Getinet Astatike & Bryson, Alex & White, Michael, 2012. "Heterogeneity in Union Status and Employee Well-Being," IZA Discussion Papers 7075, Institute for the Study of Labor (IZA).
  3. Haile, Getinet Astatike, 2009. "Workplace Job Satisfaction in Britain: Evidence from Linked Employer-Employee Data," IZA Discussion Papers 4101, Institute for the Study of Labor (IZA).
  4. Christine Erhel & Lucie Davoine, 2007. "La qualité de l'emploi en Europe : une approche comparative et dynamique," Économie et Statistique, Programme National Persée, vol. 410(1), pages 47-69.
  5. Benjamin Artz, 2008. "Fringe Benefits and Job Satisfaction," Working Papers 08-03, UW-Whitewater, Department of Economics.
  6. Colin Green & J S Heywood, 2010. "Unions, Dissatisfied Workers and Sorting," Working Papers 615292, Lancaster University Management School, Economics Department.
  7. repec:ese:iserwp:2008-30 is not listed on IDEAS
  8. Fiorillo, Damiano & Nappo, Nunzia, 2011. "Job satisfaction in Italy: individual characteristics and social relations," MPRA Paper 31133, University Library of Munich, Germany.
  9. Benjamin Artz, 2010. "Fringe benefits and job satisfaction," International Journal of Manpower, Emerald Group Publishing, vol. 31(6), pages 626-644, September.
  10. repec:lan:wpaper:2912 is not listed on IDEAS
  11. repec:lan:wpaper:3161 is not listed on IDEAS
  12. Erling Barth & Alex Bryson & Harald Dale-Olsen, 2009. "How Does Innovation Affect Worker Well-being?," CEP Discussion Papers dp0953, Centre for Economic Performance, LSE.

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