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The Relationship between Union Membership and Net Fiscal Impact

Author

Listed:
  • Aaron Sojourner

    () (University of Minnesota)

  • José Pacas

    () (University of Minnesota)

Abstract

This paper develops the first evidence on how individuals’ union membership status affects their net fiscal impact, the difference between taxes they pay and cost of public benefits they receive, enriching our understanding of how labor relations interacts with public economics. Current Population Survey data between 1994 and 2015 in pooled cross-sections and individual first-difference models yield evidence that union membership has a positive net fiscal impact through the worker-level channels studied.

Suggested Citation

  • Aaron Sojourner & José Pacas, 2018. "The Relationship between Union Membership and Net Fiscal Impact," Working Papers 2018-015, Human Capital and Economic Opportunity Working Group.
  • Handle: RePEc:hka:wpaper:2018-015
    Note: MIP
    as

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    File URL: http://humcap.uchicago.edu/RePEc/hka/wpaper/Sojourner_Pacas_2018_union-membership-fiscal-impact.pdf
    File Function: First version, January 17, 2018
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    References listed on IDEAS

    as
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    8. Congressional Budget Office, 2014. "Taxing Capital Income: Effective Marginal Tax Rates Under 2014 Law and Selected Policy Options," Reports 49817, Congressional Budget Office.
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    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    labor union; taxes; public economic; labor relations; industrial relations; public benefits; collective bargaining; net fiscal impact; social insurance;

    JEL classification:

    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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