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A Biological Model of Unions

Author Info

  • Michael Kremer
  • Benjamin A. Olken

Abstract

This paper applies principles from evolutionary biology to the study of unions. We show that unions that implement the preferred wage and organizing policies of workers will be displaced in evolutionary competition by unions that either extract less from firms, allowing them to live longer, or spend more on union organizing, or both. This implies that unions with constitutional incumbency advantages that allow leaders to depart from members' preferences may have a selective advantage, allowing them to grow at the expense of unions lacking such provisions. Evidence from the history of American unions supports these predictions. (JEL A12, J51)

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Article provided by American Economic Association in its journal American Economic Journal: Applied Economics.

Volume (Year): 1 (2009)
Issue (Month): 2 (April)
Pages: 150-75

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Handle: RePEc:aea:aejapp:v:1:y:2009:i:2:p:150-75
Note: DOI: 10.1257/app.1.2.150
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Find related papers by JEL classification:
  • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
  • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

References listed on IDEAS
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  1. Clark, Kim B & Freeman, Richard B, 1980. "How Elastic is the Demand for Labor?," The Review of Economics and Statistics, MIT Press, vol. 62(4), pages 509-20, November.
  2. Michael D. Bordo & Claudia Goldin & Eugene N. White, 1998. "The Defining Moment: The Great Depression and the American Economy in the Twentieth Century," NBER Books, National Bureau of Economic Research, Inc, number bord98-1, Jan-Jun.
  3. Barry T. Hirsch & David A. Macpherson, 1993. "Union Membership and Coverage Files from the Current Population Surveys: Note," ILR Review, Cornell University, ILR School, vol. 46(3), pages 574-578, April.
  4. William T. Dickens & Jonathan S. Leonard, 1985. "Accounting for the Decline in Union Membership, 1950–1980," ILR Review, Cornell University, ILR School, vol. 38(3), pages 323-334, April.
  5. Caballero, R-J & Hammour, M-L, 1996. "The Macroeconomics of Specificity," Working papers 96-25, Massachusetts Institute of Technology (MIT), Department of Economics.
  6. Richard B. Freeman & Morris M. Kleiner, 1994. "Do Unions Make Enterprises Insolvent?," NBER Working Papers 4797, National Bureau of Economic Research, Inc.
  7. Barry T. Hirsch, 2004. "What Do Unions Do for Economic Performance?," Journal of Labor Research, Transaction Publishers, vol. 25(3), pages 415-456, July.
  8. William T. Dickens & Jonathan S. Leonard, 1984. "Accounting For The Decline in Union Membership," NBER Working Papers 1275, National Bureau of Economic Research, Inc.
  9. Moene, K.O. & Wallerstein, M. & Hoel, M., 1992. "Bargaining Structure and Economic Performance," Memorandum 10/1992, Oslo University, Department of Economics.
  10. Feenstra, Robert & Markusen, James R. & Rose, Andrew K, 1998. "Understanding the Home Market Effect and the Gravity Equation: The Role of Differentiating Goods," CEPR Discussion Papers 2035, C.E.P.R. Discussion Papers.
  11. Richard B. Freeman, 1997. "Spurts in Union Growth: Defining Moments and Social Processes," NBER Working Papers 6012, National Bureau of Economic Research, Inc.
  12. David Card & Craig A. Olson, 1992. "Bargaining Power, Strike Duration, and Wage Outcomes: An Analysis of Strikes in the 1880s," NBER Working Papers 4075, National Bureau of Economic Research, Inc.
  13. Timothy Dunne & Mark J. Roberts & Larry Samuelson, 1988. "Patterns of Firm Entry and Exit in U.S. Manufacturing Industries," RAND Journal of Economics, The RAND Corporation, vol. 19(4), pages 495-515, Winter.
  14. Benjamin F. Jones & Benjamin A. Olken, 2005. "Do Leaders Matter? National Leadership and Growth Since World War II," The Quarterly Journal of Economics, Oxford University Press, vol. 120(3), pages 835-864.
  15. Paula B. Voos, 1983. "Union Organizing: Costs and Benefits," ILR Review, Cornell University, ILR School, vol. 36(4), pages 576-591, July.
  16. Leo Troy, 1992. "Convergence in International Unionism, etc. The Case of Canada and the USA," British Journal of Industrial Relations, London School of Economics, vol. 30(1), pages 1-43, 03.
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Cited by:

  1. Thomas J. Holmes, 2006. "Geographic Spillover of Unionism," NBER Working Papers 12025, National Bureau of Economic Research, Inc.

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