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The Rise And Fall Of Unions In The U.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
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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. Baris Kaymak & Omer Acikgoz, 2011. "The Rising Skill Premium and Deunionization in the United States," 2011 Meeting Papers 1433, Society for Economic Dynamics.
  17. Lee Ohanian & David Lagakos & Simeon Alder, 2012. "The Decline of the U.S. Rust Belt: A Macroeconomic Analysis," 2012 Meeting Papers 793, Society for Economic Dynamics.
  18. Ríos-Rull, José-Víctor & Santaeulàlia-Llopis, Raül, 2010. "Redistributive shocks and productivity shocks," Journal of Monetary Economics, Elsevier, vol. 57(8), pages 931-948, November.
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