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The Racial Composition of Unemployment: The Role of Unions

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  • Heywood, John S
  • Mohtadi, Hamid

Abstract

A theoretical model demonstrates that when minority workers are subject to discrimination in the nonunion sector they will comprise a disproportionate share of the pool waiting for union jobs. This results because the union sector--with its uniform wages--offers minority workers substantially higher union premiums than those available to majority workers. Direct empirical tests confirm that racial minorities do represent a disproportionate share of the union pool. This result persists across specifications that account for other characteristics of the workers, for characteristics of the job search, and for past union status. Copyright 1995 by Blackwell Publishers Ltd and The Victoria University of Manchester

Suggested Citation

  • Heywood, John S & Mohtadi, Hamid, 1995. "The Racial Composition of Unemployment: The Role of Unions," The Manchester School of Economic & Social Studies, University of Manchester, vol. 63(2), pages 175-195, June.
  • Handle: RePEc:bla:manch2:v:63:y:1995:i:2:p:175-95
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    References listed on IDEAS

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    8. Olivier Jean Blanchard & Stanley Fischer, 1989. "Lectures on Macroeconomics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262022834, January.
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    11. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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