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Vulnerable Seniors: Unions, Tenure, and Wages Following Permanent Job Loss

  • Kuhn, Peter
  • Sweetman, Arthur

In contrast to nonunion workers, reemployment wages of workers displaced from unionized jobs decline with tenure on the lost job. This finding cannot easily be explained by firm- or industry-specific human capital accumulation, deferred-pay policies, standard matching models, or a correlation between tenure and reentry rates into unionized jobs. Possible explanations include negative selection of senior union workers and a negative causal effect of unionism on workers' alternative skills. Despite a much flatter predisplacement tenure-wage profile, displaced union workers' wage losses increase with tenure at a rate comparable to or higher than those of nonunion workers. Copyright 1999 by University of Chicago Press.

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Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 17 (1999)
Issue (Month): 4 (October)
Pages: 671-93

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Handle: RePEc:ucp:jlabec:v:17:y:1999:i:4:p:671-93
Contact details of provider: Web page: http://www.journals.uchicago.edu/JOLE/

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  18. Crossley, T.F., 1998. "What Can We Learn from Displaced Worker Data about the Returns to Tenure?," Papers 346, Australian National University - Department of Economics.
  19. George J. Borjas, 1979. "Job Satisfaction, Wages, and Unions," Journal of Human Resources, University of Wisconsin Press, vol. 14(1), pages 21-40.
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