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The Exit-Voice Tradeoff in the Labor Market: Unionism, Job Tenure, Quits

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  • Richard B. Freeman

Abstract

This paper examines the effect of trade unionism on the exit behavior of workers in the context of Hirschman's exit-voice dichotomy. Unionism is expected to reduce quits and permanent separations and raise job tenure by providing a "voice" alternative to exit when workers are dissatisfied with conditions. Empirical evidence supports this contention, showing significantly lower exit for unionists in several large data tapes. It is argued that the grievance system plays a major role in the reduction in exit and that the reduction lowers cost and raises productivity.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 0242.

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Date of creation: Nov 1980
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Publication status: published as Freeman, Richard B. "The Exit-Voice Tradeoff in the Labor Market: Unionism, Job Tenure, Quits, and Separations." The Quarterly Journal of Economics, Vol XCIV, No. 4, (June 1980), pp. 643- 673.
Handle: RePEc:nbr:nberwo:0242

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  1. Kahn, Lawrence M, 1977. "Union Impact: A Reduced Form Approach," The Review of Economics and Statistics, MIT Press, vol. 59(4), pages 503-07, November.
  2. Freeman, Richard B, 1976. "Individual Mobility and Union Voice in the Labor Market," American Economic Review, American Economic Association, American Economic Association, vol. 66(2), pages 361-68, May.
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Cited by:
  1. Panos, Georgios & Theodossiou, Ioannis, 2010. "Unionism and Peer-Referencing," Stirling Economics Discussion Papers, University of Stirling, Division of Economics 2010-03, University of Stirling, Division of Economics.
  2. Laszlo Goerke & Markus Pannenberg, 2012. "Trade Union Membership and Sickness Absence: Evidence from a Sick Pay Reform," IAAEU Discussion Papers, Institute of Labour Law and Industrial Relations in the European Union (IAAEU) 201207, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
  3. Mark Wooden & Diana Warren, 2003. "The Characteristics of Casual and Fixed-Term Employment: Evidence from the HILDA Survey," Melbourne Institute Working Paper Series, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne wp2003n15, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  4. John T. Addison & Paulino Teixeira & Thomas Zwick, 2010. "German Works Councils and the Anatomy of Wages," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 63(2), pages 247-270, January.
  5. Bertola, Giuseppe & Blau, Francine D & Kahn, Lawrence, 2001. "Comparative Analysis of Labour Market Outcomes: Lessons for the US from International Long-Run Evidence," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3023, C.E.P.R. Discussion Papers.
  6. Uwe Jirjahn & Jens Mohrenweiser & Uschi Backes‐Gellner, 2011. "Works Councils and Learning: On the Dynamic Dimension of Codetermination," Kyklos, Wiley Blackwell, Wiley Blackwell, vol. 64(3), pages 427-447, 08.
  7. Lucifora, Claudio, 1998. "The impact of unions on labour turnover in Italy:: Evidence from establishment level data," International Journal of Industrial Organization, Elsevier, Elsevier, vol. 16(3), pages 353-376, May.
  8. Goetz Zeddies, 2012. "International trade patterns and labour markets – an empirical analysis for EU member states," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, Inderscience Enterprises Ltd, vol. 4(1/2), pages 96-115.
  9. Gerlach, Knut & Stephan, Gesine, 2005. "Individual tenure and collective contracts," IAB Discussion Paper, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] 200510, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  10. Leora Friedberg & Michael Owyang, 2004. "Explaining the Evolution of Pension Structure and Job Tenure," NBER Working Papers 10714, National Bureau of Economic Research, Inc.

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