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Going different ways: Unionism in the US and other advanced OECD CountriesF

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  • David Blanchflower
  • Richard Freeman

Abstract

In this paper we compare the changing pattern of unionization in OECD countries, review existing evidence, and present new information on cross-country differences in union/non-union differentials in labour market outcomes, largely from the micro data files of the International Social Survey Programme cross-country surveys of 1985-1987. Our analysis shows that American unions have a larger effect on wages, but not on other outcomes, than unions in other countries. We argue that the high union wage premium in the US contributed to the decline in US union density and to the consequent divergence of the US industrial relations system from those in most OECD countries. Looking to the future, our findings suggest that US unions must make major innovations in their tactics and policies to regain a position of strength in the private sector and that the nation will have to develop new industrial relations institutions to avoid the Congress and the judiciary intervening frequently in workplace decisions.

Suggested Citation

  • David Blanchflower & Richard Freeman, 1990. "Going different ways: Unionism in the US and other advanced OECD CountriesF," CEP Discussion Papers dp0005, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp0005
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    Cited by:

    1. Stephen G. Cecchetti & Peter Hooper & Bruce C. Kasman & Kermit L. Schoenholtz & Mark W. Watson, 2007. "Understanding the Evolving the Evolving Inflation Process," Working Papers 2007-4, Princeton University. Economics Department..
    2. Henrekson, Magnus & Johansson, Dan, 2010. "Firm Growth, Institutions and Structural Transformation," Ratio Working Papers 150, The Ratio Institute.
    3. Daniele Checchi & Jelle Visser, 2002. "Pattern persistence in european trade union density," Departmental Working Papers 2002-01, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    4. Thomas Kochan & Marc Weinstein, 1994. "Recent Developments in US Industrial Relations," British Journal of Industrial Relations, London School of Economics, vol. 32(4), pages 483-504, December.
    5. Giacomo Corneo, 1993. "Semi-unionized bargaining with endogenous membership and management opposition," Journal of Economics, Springer, vol. 57(2), pages 169-188, June.
    6. Corneo, Giacomo & Lucifora, Claudio, 1997. "Wage formation under union threat effects: Theory and empirical evidence," Labour Economics, Elsevier, vol. 4(3), pages 265-292, September.
    7. Jarkko Turunen, 1998. "Disaggregated wage curves in the United States: evidence from panel data of young workers," Applied Economics, Taylor & Francis Journals, vol. 30(12), pages 1665-1677.
    8. Frank Scharr, 2005. "Tarifbindung, Rententeilung und Konzessionsverträge als Einflussgrößen der Lohnhöhe in Unternehmen : eine Untersuchung mit Mikrodaten für thüringische Firmen," ifo Dresden Studien, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 39.
    9. Paul Miller & Charles Mulvey, 1994. "Unions, Training, Job Dissatisfaction and Quits," The Economic and Labour Relations Review, , vol. 5(2), pages 121-141, December.
    10. John Schmitt, 1993. "The Changing Structure of Male Earnings in Britain," CEP Discussion Papers dp0122, Centre for Economic Performance, LSE.
    11. Alexey Levkov, 2010. "Branching of banks and union decline," Supervisory Research and Analysis Working Papers QAU10-7, Federal Reserve Bank of Boston.
    12. Leo Troy, 1992. "Convergence in International Unionism, etc. The Case of Canada and the USA," British Journal of Industrial Relations, London School of Economics, vol. 30(1), pages 1-43, March.
    13. Lixin Cai & Amy Y.C. Liu, 2007. "Union Wage Effects in Australia: Are There Variations in Distribution?," Melbourne Institute Working Paper Series wp2007n017, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.

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