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Did Globalization Reduce Unionisation? Evidence from U.S. Manufacturing

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Author Info

  • Elisabetta Magnani

    (The University of New South Wales)

  • David Prentice

    ()
    (School of Economics, La Trobe University)

Abstract

How do globalization economic conditions affect labour market institutions such as unionism? We draw on recent theoretical and empirical work to yield a more comprehensive set of hypotheses related to the decline in unionisation. Furthermore, we extend recent theoretical work to highlight a direct role for competition (domestic and international) in determining unionisation. This paper uses a unique data set of U.S. three-digit manufacturing industries from 1972 to 1994 to test the hypothesis that domestic and international competition reduce unionisation. The main finding is that in spite of the importance of quasi-rents to explain unionisation, foreign and domestic competition are also significant determinants of unionisation.

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Bibliographic Info

Paper provided by School of Economics, La Trobe University in its series Working Papers with number 2000.17.

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Length: 32 pages
Date of creation: 2000
Date of revision:
Handle: RePEc:trb:wpaper:2000.17

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Keywords: Manufacturing; Economic Conditions; Labour Market;

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References

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  1. Robert C. Feenstra, 1997. "U.S. Exports, 1972-1994: With State Exports and Other U.S. Data," NBER Working Papers 5990, National Bureau of Economic Research, Inc.
  2. Booth,Alison L., 1994. "The Economics of the Trade Union," Cambridge Books, Cambridge University Press, number 9780521464673.
  3. Eli Berman & John Bound & Stephen Machin, 1997. "Implications of Skill-Biased Technological Change: International Evidence," Boston University - Institute for Economic Development 78, Boston University, Institute for Economic Development.
  4. Richard B. Freeman, 1985. "The Effect of the Union Wage Differential on Management Opposition and Union Organizing Success," NBER Working Papers 1748, National Bureau of Economic Research, Inc.
  5. Farber, Henry S, 1990. "The Decline of Unionization in the United States: What Can Be Learned from Recent Experience," Journal of Labor Economics, University of Chicago Press, vol. 8(1), pages S75-105, January.
  6. Layard, Richard & Nickell, Stephen & Jackman, Richard, 1991. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780198284345, September.
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  8. Eric J. Bartelsman & Wayne Gray, 1996. "The NBER Manufacturing Productivity Database," NBER Technical Working Papers 0205, National Bureau of Economic Research, Inc.
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  19. Farber, H.S. & Abowd, J.M., 1990. "Product Market Competition, Union Organizing Activity, And The Employer Resistance," Working papers 551, Massachusetts Institute of Technology (MIT), Department of Economics.
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  24. repec:fth:prinin:410 is not listed on IDEAS
  25. Edwards, Richard & Swaim, Paul, 1986. "Union-Nonunion Earnings Differentials and the Decline of Private-Sector Unionism," American Economic Review, American Economic Association, vol. 76(2), pages 97-102, May.
  26. Green, Francis, 1990. "Trade Union Availability and Trade Union Membership in Britain," The Manchester School of Economic & Social Studies, University of Manchester, vol. 58(4), pages 378-94, December.
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Citations

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Cited by:
  1. John Schmitt & Alexandra Mitukiewicz, 2012. "Politics matter: changes in unionisation rates in rich countries, 1960–2010," Industrial Relations Journal, Wiley Blackwell, vol. 43(3), pages 260-280, 05.
  2. Ceyhun Elgin, 2012. "Unionization and informal economy," Economics Bulletin, AccessEcon, vol. 32(3), pages 2615-2623.
  3. repec:ltr:wpaper:2007.04 is not listed on IDEAS
  4. Elisabetta Magnani & David Prentice, 2006. "Outsourcing and Unionisation: A tale of misallocated (resistance) resources," Working Papers 2006.03, School of Economics, La Trobe University.
  5. Potrafke, Niklas, 2013. "Globalization and labor market institutions: International empirical evidence," Munich Reprints in Economics 19288, University of Munich, Department of Economics.
  6. Samantha Farmakis‐Gamboni & David Prentice, 2011. "When Does Reducing Union Bargaining Power Increase Productivity? Evidence from the Workplace Relations Act," The Economic Record, The Economic Society of Australia, vol. 87(279), pages 603-616, December.
  7. Samantha Farmakis-Gamboni & David Prentice, 2007. "Does Reducing Union Bargaining Power Increase Productivity?," Working Papers 2007.04, School of Economics, La Trobe University.
  8. Schnabel, Claus, 2012. "Union Membership and Density: Some (Not So) Stylized Facts and Challenges," IZA Discussion Papers 6792, Institute for the Study of Labor (IZA).

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