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Did globalization reduce unionization? Evidence from US manufacturing

  • Magnani, Elisabetta
  • Prentice, David

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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Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 10 (2003)
Issue (Month): 6 (December)
Pages: 705-726

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Handle: RePEc:eee:labeco:v:10:y:2003:i:6:p:705-726
Contact details of provider: Web page: http://www.elsevier.com/locate/labeco

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