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Offshoring and the Decline of Unions

Author

Listed:
  • Jakob R. Munch

    (Univeristy of Copenhagen)

  • William W. Olney

    (Williams College)

Abstract

""Offshoring can reduce unionization rates by changing the composition of domestic employment or by eroding the union’s bargaining power and thus decreasing the benefits of membership. Using an employer-employee matched data set we measure the exogenous threat of offshoring at the firm-level and union decisions of individual workers. Findings show that the threat of offshoring reduces unionization rates, even within a job-spell. This is not driven by the changing composition of workers, but instead is consistent with a decline in the union's bargaining position. Additional results confirm that the union-wage-premium and the rent-sharing elasticity are both smaller at offshoring firms.""

Suggested Citation

  • Jakob R. Munch & William W. Olney, 2025. "Offshoring and the Decline of Unions," Department of Economics Working Papers 2025_117, Department of Economics, Williams College.
    • Handle: RePEc:wil:wileco:2025_117
    DOI: 10.36934/wecon:2025_117
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    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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