IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/11410.html

What Do Unions Do?: The 2004 M-Brane Stringtwister Edition

Author

Listed:
  • Richard B. Freeman

Abstract

The Journal of Labor Research 20th anniversary symposium review of What Do Unions Do? offers a unique opportunity to examine how the claims made in the book have fared in ensuing research and to ponder what parts of the book I would change if I could. This paper responds to the 18 critical essays in the journal. It recognizes three major errors of omission: failure to take account of unionism outside the US; failure to analyze public sector unionism; and failure to analyze the effects of unionism on economic growth; and the problem of determining the "optimal level of unionism" on the basis of estimates of what unions do. Ensuing research has found that What Do Unions Do? correctly identified union effects on turnover, fringe benefits, earnings inequality, political action, profits, managerial flexibility and human resource management, and that wage effects vary widely. Estimates of the union effect on productivity tend to be positive but modest, ruling out negative effects on average, but not conclusively establishing positive effects. Critical comments from some of the symposium panelists notwithstanding, I believe that the bulk of the evidence supports the What Do Unions Do? claim that management opposition has been a major factor in the decline in union density in the US.

Suggested Citation

  • Richard B. Freeman, 2005. "What Do Unions Do?: The 2004 M-Brane Stringtwister Edition," NBER Working Papers 11410, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:11410
    Note: LS
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w11410.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Richard B. Freeman & Casey Ichniowski, 1988. "When Public Sector Workers Unionize," NBER Books, National Bureau of Economic Research, Inc, number free88-1, January.
    2. Freeman, Richard B. & Weitzman, Martin L., 1987. "Bonuses and employment in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 1(2), pages 168-194, June.
    3. Daniel J.B. Mitchell & Christopher L. Erickson, 2005. "De-Unionization and Macro Performance: What Freeman and Medoff Didn't Do," Journal of Labor Research, Transaction Publishers, vol. 26(2), pages 183-204, January.
    4. 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.
    5. Kim B. Clark, 1980. "Unionization and Productivity: Micro-Econometric Evidence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 95(4), pages 613-639.
    6. John Pencavel, 2005. "Unionism Viewed Internationally," Journal of Labor Research, Transaction Publishers, vol. 26(1), pages 65-97, January.
    7. Freeman, Richard B. & Ichniowski, Casey (ed.), 1988. "When Public Sector Workers Unionize," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226261669.
    8. Edward Renshaw, 1995. "Analysis," Challenge, Taylor & Francis Journals, vol. 38(3), pages 53-56, May.
    9. Richard B. Freeman & Edward P. Lazear, 1995. "An Economic Analysis of Works Councils," NBER Chapters, in: Works Councils: Consultation, Representation, and Cooperation in Industrial Relations, pages 27-52, National Bureau of Economic Research, Inc.
    10. David Card & Thomas Lemieux & W. Craig Riddell, 2004. "Unions and Wage Inequality," Journal of Labor Research, Transaction Publishers, vol. 25(4), pages 519-562, October.
    11. Bruce E. Kaufman, 2004. "What Unions Do: Insights from Economic Theory," Journal of Labor Research, Transaction Publishers, vol. 25(3), pages 351-382, July.
    12. Barry T. Hirsch, 2004. "What Do Unions Do for Economic Performance?," Journal of Labor Research, Transaction Publishers, vol. 25(3), pages 415-456, July.
    13. Richard Freeman, 2005. "Labour market institutions without blinders: The debate over flexibility and labour market performance," International Economic Journal, Taylor & Francis Journals, vol. 19(2), pages 129-145.
    14. Feldstein, Martin & Horioka, Charles, 1980. "Domestic Saving and International Capital Flows," Economic Journal, Royal Economic Society, vol. 90(358), pages 314-329, June.
    15. David Card, 2001. "The Effect of Unions on Wage Inequality in the U.S. Labor Market," ILR Review, Cornell University, ILR School, vol. 54(2), pages 296-315, January.
    16. Laroche, P., 2000. "What do Unions do to Productivity? A Meta-Analysis," Papers 2000-5, Groupe de recherche en économie financière et en gestion des entreprises, Universite Nancy 2.
    17. Toke Aidt & Zafiris Tzannatos, 2002. "Unions and Collective Bargaining : Economic Effects in a Global Environment," World Bank Publications - Books, The World Bank Group, number 15241, April.
    18. Bruce E. Kaufman, 2005. "Historical Insights: The Early Institutionalists on Trade Unionism and Labor Policy," Journal of Labor Research, Transaction Publishers, vol. 26(1), pages 1-32, January.
    19. repec:ucp:bknber:9780226723761 is not listed on IDEAS
    20. John T. Addison & Clive R. Belfield, 2004. "Union Voice," Journal of Labor Research, Transaction Publishers, vol. 25(4), pages 563-596, October.
    21. James T. Bennett & Bruce E. Kaufman, 2004. "What Do Unions Do?: A Twenty-Year Perspective," Journal of Labor Research, Transaction Publishers, vol. 25(3), pages 339-350, July.
    22. David G. Blanchflower & Alex Bryson, 2004. "What Effect Do Unions Have on Wages Now and Would Freeman and Medoff Be Surprised?," Journal of Labor Research, Transaction Publishers, vol. 25(3), pages 383-414, July.
    23. Barry T. Hirsch, 1991. "Labor Unions and the Economic Performance of Unions," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number luepf.
    24. Tove Helland Hammer & Ariel Avgar, 2005. "The Impact of Unions on Job Satisfaction, Organizational Commitment, and Turnover," Journal of Labor Research, Transaction Publishers, vol. 26(2), pages 241-266, January.
    25. KENNETH McLENNAN, 2005. "What Do Unions Do?--A Management Perspective," Journal of Labor Research, Transaction Publishers, vol. 26(4), pages 597-621, November.
    26. John W. Budd, 2004. "Non-Wage Forms of Compensation," Journal of Labor Research, Transaction Publishers, vol. 25(4), pages 597-622, October.
    27. Richard B. Freeman & Robert Valletta, 1988. "The Effects of Public Sector Labor Laws on Labor Market Institutions and Outcomes," NBER Chapters, in: When Public Sector Workers Unionize, pages 81-106, National Bureau of Economic Research, Inc.
    28. Freeman, Richard B, 1976. "Individual Mobility and Union Voice in the Labor Market," American Economic Review, American Economic Association, vol. 66(2), pages 361-368, May.
    29. Clark, Kim B, 1984. "Unionization and Firm Performance: The Impact on Profits, Growth, and Productivity," American Economic Review, American Economic Association, vol. 74(5), pages 893-919, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. John T. Addison, 2016. "Collective bargaining systems and macroeconomic and microeconomic flexibility: the quest for appropriate institutional forms in advanced economies," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-53, December.
    2. Meszaros, John, 2018. "Inequality and unionization within the United States," The Quarterly Review of Economics and Finance, Elsevier, vol. 67(C), pages 326-333.
    3. Blanchflower, David G., 2006. "A Cross-Country Study of Union Membership," IZA Discussion Papers 2016, IZA Network @ LISER.
    4. Fernando Rios-Avila, 2017. "Unions and Economic Performance in Developing Countries: Case Studies from Latin America," Revista Ecos de Economía, Universidad EAFIT, vol. 21(44), pages 4-36.
    5. Tony Fang & Ying Ge & Youqing Fan, 2019. "Unions and the productivity performance of multinational enterprises: evidence from China," Asian Business & Management, Palgrave Macmillan, vol. 18(4), pages 281-300, September.
    6. John T. Addison, 2005. "The Determinants Of Firm Performance: Unions, Works Councils, And Employee Involvement/High‐Performance Work Practices," Scottish Journal of Political Economy, Scottish Economic Society, vol. 52(3), pages 406-450, July.
    7. John T. Addison, 2016. "Collective bargaining systems and macroeconomic and microeconomic flexibility: the quest for appropriate institutional forms in advanced economies," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-53, December.
    8. Richard B. Freeman, 2007. "Labor Market Institutions Around the World," NBER Working Papers 13242, National Bureau of Economic Research, Inc.
    9. Barry T. Hirsch, 2012. "Unions, dynamism, and economic performance," Chapters, in: Cynthia L. Estlund & Michael L. Wachter (ed.), Research Handbook on the Economics of Labor and Employment Law, chapter 4, pages 107-145, Edward Elgar Publishing.
    10. Laroche, Patrice, 2020. "Unions, Collective Bargaining and Firm Performance," GLO Discussion Paper Series 728, Global Labor Organization (GLO).
    11. Terry M. Moe, 2009. "Collective Bargaining and The Performance of the Public Schools," American Journal of Political Science, John Wiley & Sons, vol. 53(1), pages 156-174, January.
    12. Lu, Yi & Tao, Zhigang & Wang, Yijiang, 2010. "Union effects on performance and employment relations: Evidence from China," China Economic Review, Elsevier, vol. 21(1), pages 202-210, March.
    13. Pierre Brochu & Louis-Philippe Morin, 2011. "Union Membership and Perceived Job Insecurity: 30 Years of Evidence from the American General social Survey," Working Papers 1106E, University of Ottawa, Department of Economics.
    14. Gary Gorton & Frank Schmid, 2000. "Class Struggle Inside the Firm: A Study of German Codetermination," Center for Financial Institutions Working Papers 00-36, Wharton School Center for Financial Institutions, University of Pennsylvania.
    15. Gerlach, Knut & Stephan, Gesine, 2005. "Tarifverträge und betriebliche Entlohnungsstrukturen," IAB-Discussion Paper 200520, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    16. Cedric E. Dawkins, 2019. "A Normative Argument for Independent Voice and Labor Unions," Journal of Business Ethics, Springer, vol. 155(4), pages 1153-1165, April.
    17. Barry T. Hirsch, 2008. "Sluggish Institutions in a Dynamic World: Can Unions and Industrial Competition Coexist?," Journal of Economic Perspectives, American Economic Association, vol. 22(1), pages 153-176, Winter.
    18. Gomez, Rafael & Tzioumis, Konstantinos, 2006. "What do unions do to executive compensation?," LSE Research Online Documents on Economics 19865, London School of Economics and Political Science, LSE Library.
    19. John T. Addison & Thorsten Schank & Claus Schnabel & Joachim Wagner, 2006. "Works Councils in the Production Process," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 126(2), pages 251-283.
    20. David G. Blanchflower & Alex Bryson & Colin Green, 2022. "Trade unions and the well‐being of workers," British Journal of Industrial Relations, London School of Economics, vol. 60(2), pages 255-277, June.

    More about this item

    JEL classification:

    • J0 - Labor and Demographic Economics - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:11410. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/nberrus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.