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Employment and Unemployment Effects of Unions

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  • Montgomery, Edward

Abstract

Despite an extensive literature examining the effects of unions on wages, little attention has been paid to the resultant aggregate employment consequences of this change in the relative cost of unionized labor. This article uses 1983 Current Population Survey data to estimate the effects of union strength on the probability of employment and labor-force participation. Union strength, which reflects both union coverage and the union wage differential, is found to decrease employment and increase unemployment by a small, but significant, amount. These effects are concentrated primarily among females and young males, while little impact is found on prime-age males. Copyright 1989 by University of Chicago Press.

Suggested Citation

  • Montgomery, Edward, 1989. "Employment and Unemployment Effects of Unions," Journal of Labor Economics, University of Chicago Press, vol. 7(2), pages 170-190, April.
  • Handle: RePEc:ucp:jlabec:v:7:y:1989:i:2:p:170-90
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    Cited by:

    1. Chu, Angus C. & Cozzi, Guido & Furukawa, Yuichi, 2016. "Unions, innovation and cross-country wage inequality," Journal of Economic Dynamics and Control, Elsevier, vol. 64(C), pages 104-118.
    2. Addison, John T. & Teixeira, Paulino, 2004. "The Effect of Worker Representation on Employment Behavior in Germany: Another Case of -2.5%," IZA Discussion Papers 1188, Institute for the Study of Labor (IZA).
    3. John T. Addison & Paulino Teixeira, 2005. "The Effect of Works Councils on Employment Change," GEMF Working Papers 2005-06, GEMF, Faculty of Economics, University of Coimbra.
    4. Lu, Yi & Tao, Zhigang & Wang, Yijiang, 2010. "Union effects on performance and employment relations: Evidence from China," China Economic Review, Elsevier, vol. 21(1), pages 202-210, March.
    5. David Neumark & Michael L. Wachter, 1992. "Union Threat Effects and Nonunion Industry Wage Differentials," NBER Working Papers 4046, National Bureau of Economic Research, Inc.
    6. Nancy Brown Johnson & Philip Bobko & Linda S. Hartenian, 1992. "Union Influence on Local Union Leaders' Perceptions of Job Insecurity: An Empirical Test," British Journal of Industrial Relations, London School of Economics, vol. 30(1), pages 45-60, March.

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