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A Fixed Effect Logit Model of the Impact Of Unionism on Quits

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  • Richard B. Freeman

Abstract

There are two possible reasons for unionized workers to have lower quit rates than otherwise comparable nonunion workers: unions could organize employees with innately lower propensities to quit or they could reduce propensities by offering disgruntled workers alternatives to quitting in the form of grievance arbitration and related industrial jurisprudence systems. This paper uses a fixed effect logit model based on the conditional likelihood function to disentangle these two effects. The paper finds that the observed union-quit tradeoff is due largely to the impact of unionism on worker behavior rather than to the propensity of stable workers to be organized, supporting the notion that unions have important nonwage effects along the lines suggested by the "exit-voice" model of union activity.

Suggested Citation

  • Richard B. Freeman, 1978. "A Fixed Effect Logit Model of the Impact Of Unionism on Quits," NBER Working Papers 0280, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:0280 Note: LS
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    1. Richard B. Freeman, 1980. "The Exit-Voice Tradeoff in the Labor Market: Unionism, Job Tenure, Quits, and Separations," The Quarterly Journal of Economics, Oxford University Press, vol. 94(4), pages 643-673.
    2. Brown, Charles & Medoff, James, 1978. "Trade Unions in the Production Process," Journal of Political Economy, University of Chicago Press, vol. 86(3), pages 355-378, June.
    3. Kahn, Lawrence M, 1977. "Union Impact: A Reduced Form Approach," The Review of Economics and Statistics, MIT Press, vol. 59(4), pages 503-507, November.
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    Cited by:

    1. Michela Ponzo, 2012. "On-the-job Search in Italian Labor Markets: An Empirical Analysis," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 19(2), pages 213-232, July.
    2. Thomas Cornelißen, 2009. "The Interaction of Job Satisfaction, Job Search, and Job Changes. An Empirical Investigation with German Panel Data," Journal of Happiness Studies, Springer, vol. 10(3), pages 367-384, June.
    3. Cornelißen, Thomas, 2006. "Job characteristics as determinants of job satisfaction and labour mobility," Hannover Economic Papers (HEP) dp-334, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.

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