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The Rise And Fall Of Unions In The U.S

Listed author(s):
  • Emin Dinlersoz
  • Jeremy Greenwood

Union membership in U.S. displayed a n-shaped pattern over the 20th century, while in- come inequality sketched a ?. A model of unions is developed to analyze this phenomenon. There is a distribution of productivity across firms in the economy. Firms hire capital, plus skilled and unskilled labor. Unionization is a costly process. A union chooses how many firms to organize and the union wage. Simulation of the model establishes that skill-biased technological change, which a?ects the productivity of skilled labor relative to unskilled labor, can potentially explain the above facts. Statistical analysis suggests that skill-biased technological change is an important factor in deunionization.

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File URL: http://www2.census.gov/ces/wp/2012/CES-WP-12-12R.pdf
File Function: First version, 2013
Download Restriction: no

Paper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 12-12r.

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Length: 62 pages
Date of creation: Jun 2012
Date of revision: Jun 2013
Handle: RePEc:cen:wpaper:12-12r
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  16. Reder, Melvin W, 1988. "The Rise and Fall of Unions: The Public Sector and the Private," Journal of Economic Perspectives, American Economic Association, vol. 2(2), pages 89-110, Spring.
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