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New Evidence on Unions and Layoff Rates

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  • Mark Montgomery

Abstract

This study uses data from the 1980 EOPP establishment survey to test the hypothesis that unionization leads to higher layoff rates. Previous studies, using industry-level data for manufacturing, have found that a firm with 100% of its workers unionized would lay off more than twice as many employees as an otherwise identical nonunionized firm. The results presented here show the unionization effect to be, at most, less than one-fifth as large as that found using industry data. In fact, the author finds that in manufacturing (though not in nonmanufacturing) it is not clear whether unionized establishments lay off more workers than nonunionized establishments because they are unionized or because they tend to be large.

Suggested Citation

  • Mark Montgomery, 1991. "New Evidence on Unions and Layoff Rates," ILR Review, Cornell University, ILR School, vol. 44(4), pages 708-721, July.
  • Handle: RePEc:sae:ilrrev:v:44:y:1991:i:4:p:708-721
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    Cited by:

    1. Partridge, Mark D. & Rickman, Dan S., 1998. "Regional differences in chronic long-term unemployment," The Quarterly Review of Economics and Finance, Elsevier, vol. 38(2), pages 193-215.
    2. Vanessa V Tinsley, 2003. "Firms and Layoffs: The Impact of Unionization on Involuntary Job Loss," Working Papers 03-09, Center for Economic Studies, U.S. Census Bureau.
    3. Pierre Brochu & Louis-Philippe Morin, 2012. "Union Membership and Perceived Job Insecurity: Thirty Years of Evidence from the American General Social Survey," ILR Review, Cornell University, ILR School, vol. 65(2), pages 263-285, April.

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