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Unions and Job Security in the Public Sector

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Author Info
Steven G. Allen

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Abstract

This study examines the effect of unions on job security in the public and private sectors. Despite much lower unemployment rates for public than private sector workers, once one controls for differences in worker and job characteristics, the odds of being unemployed are identical for nonunion workers in the public and private sectors. The picture is quite different for union workers, who face greater odds of becoming unemployed than nonunion workers in private sector jobs but much lower chances of becoming unemployed in the public sector. The ability of unions to reduce layoff and unemployment rates in the public sector seems attributable to the political power to prevent budget cuts and the absence of Unemployment Insurance subsidies or supplemental unemployment benefits.

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Publisher Info
Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 2108.

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Date of creation: Aug 1989
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Publication status: published as From When Public Sector Workers Unionize, edited by Richard B. Freeman and Casey Ichniowski, pp. 271-296. Chicago: The University of Chicago Press, 1988.
Handle: RePEc:nbr:nberwo:2108

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  1. Medoff, James L, 1979. "Layoffs and Alternatives under Trade Unions in U.S. Manufacturing," American Economic Review, American Economic Association, vol. 69(3), pages 380-95, June. [Downloadable!] (restricted)
  2. Charles R. Perry, 1979. "Teacher bargaining: The experience in nine systems," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 33(1), pages 3-17, October.
  3. Kim B. Clark & Lawrence H. Summers, 1979. "Labor Market Dynamics and Unemployment: A Reconsideration," NBER Reprints 0019, National Bureau of Economic Research, Inc.
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  1. Néstor Gandelman & Carlos Casacuberta & Gabriela Fachola, 2004. "The Impact of Trade Liberalization on Employment, Capital and Productivity Dynamics:," Econometric Society 2004 Latin American Meetings 97, Econometric Society. [Downloadable!]
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