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Why So Unhappy? The Effects of Unionisation on Job Satisfaction

Author

Listed:
  • Bryson, Alex

    (University College London)

  • Cappellari, Lorenzo

    (LISER)

  • Lucifora, Claudio

    (Università Cattolica del Sacro Cuore)

Abstract

We use linked employer-employee data to investigate the job satisfaction effect of unionisation in Britain. We depart from previous studies by developing a model that simultaneously controls for the endogeneity of union membership and union recognition. We show that a negative association between membership and satisfaction only emerges where there is a union recognised for bargaining, and that such an effect vanishes when the simultaneous selection into membership and recognition is taken into account. We also show that ignoring endogenous recognition would lead to conclude that membership has a positive effect on satisfaction. Our estimates indicate that the unobserved factors that lead to sorting across workplaces are negatively related to the ones determining membership and positively related with those generating satisfaction, a result that we interpret as being consistent with the existence of queues for union jobs.

Suggested Citation

  • Bryson, Alex & Cappellari, Lorenzo & Lucifora, Claudio, 2005. "Why So Unhappy? The Effects of Unionisation on Job Satisfaction," IZA Discussion Papers 1498, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp1498
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    References listed on IDEAS

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    1. Alison L. Booth & Mark L. Bryan, 2004. "The Union Membership Wage-Premium Puzzle: Is There a Free Rider Problem?," ILR Review, Cornell University, ILR School, vol. 57(3), pages 402-421, April.
    2. Miller, Paul W, 1990. "Trade Unions and Job Satisfaction," Australian Economic Papers, Wiley Blackwell, vol. 29(55), pages 226-248, December.
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    4. Henry S. Farber, 2001. "Notes on the Economics of Labor Unions," Working Papers 831, Princeton University, Department of Economics, Industrial Relations Section..
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    6. Alex Bryson & Lorenzo Cappellari & Claudio Lucifora, 2004. "Does Union Membership Really Reduce Job Satisfaction?," British Journal of Industrial Relations, London School of Economics, vol. 42(3), pages 439-459, September.
    7. Michael E. Gordon & Angelo S. Denisi, 1995. "A Re-Examination of the Relationship between Union Membership and Job Satisfaction," ILR Review, Cornell University, ILR School, vol. 48(2), pages 222-236, January.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    job satisfaction; union membership; union recognition; endogeneity;
    All these keywords.

    JEL classification:

    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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