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The Exit-Voice Tradeoff in the Labor Market: Unionism, Job Tenure, Quits, and Separations

Listed author(s):
  • Richard B. Freeman

This paper examines the effect of trade unionism on the exit behavior of workers in the context of Hirschman's exit-voice dichotomy. Unionism is expected to reduce quits and permanent separations and raise job tenure by providing a "voice" alternative to exit when workers are dissatisfied with conditions. Empirical evidence supports this contention, showing significantly lower exit for unionists in several large data tapes. It is argued that the grievance system plays a major role in the reduction in exit and that the reduction lowers cost and raises productivity.

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File URL: http://hdl.handle.net/10.2307/1885662
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Article provided by Oxford University Press in its journal The Quarterly Journal of Economics.

Volume (Year): 94 (1980)
Issue (Month): 4 ()
Pages: 643-673

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Handle: RePEc:oup:qjecon:v:94:y:1980:i:4:p:643-673.
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