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Anticipation, Free Rider Problem, and Adaptation to Trade Union: Re-examining the Curious Case of Dissatisfied Union Members

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  • Nattavudh Powdthavee

Abstract

This paper documents evidence that rejects the paradox of dissatisfied union members. Using eleven waves of the BHPS, it studies the past, contemporaneous, and future effects of union membership on job satisfaction. By separating union "free riders" from other nonmembers in the fixed effects equations, I find significant anticipation effects to joining a unionized firm for both prospective union members and covered nonmembers of both genders. Workers go on to report, on average, a significant increase in job satisfaction at the year of union coverage. Nonetheless, adaptation to unionism is complete within the first few years of joining a unionized firm.

Suggested Citation

  • Nattavudh Powdthavee, 2009. "Anticipation, Free Rider Problem, and Adaptation to Trade Union: Re-examining the Curious Case of Dissatisfied Union Members," Discussion Papers 09/04, Department of Economics, University of York.
    • Handle: RePEc:yor:yorken:09/04
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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.
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    JEL classification:

    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining

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