Heterogeneity and union membership determination

This paper formalizes theoretical and empirical analyses of the determination of union membership. It is argued that an important (and usually ignored) consideration affecting the union status of workers is the externalities between (potential) union members: The gain a worker derives from unionization is affected by the characteristics of the workers who already belong to the union, and the gain union members derive from admitting an additional worker to membership depends on that worker’s characteristics. Thus, two conditions must hold if a worker is to join a union: (1) unionization should increase his wage, and (2) union members must benefit from adding him. The main implication of this analysis is that in a given industry/occupation a union is more likely to form among workers withlower rents. To test this proposition, I present an empirical analysis using data from the May 1979 Current Population Survey (CPS) Public Use Sample. A procedure for measuring worker’s rent is discussed and certain relationships between rent and union membership are identified. I am most indebted to Finis Welch for many valuable comments and suggestions throughout the preparation of this study. I have also benefited from comments made by Mark Killingsworth, Kevin Murphy, Mark Plant, the editor of this journal, and an anonymous referee. The generous availability of the computer facilities at Unicon Research Corporation is appreciated.     

Union rent seeking and import competition

conclusion We empirically evaluate two issues: (1) how the union rent seeking responds to import competition and (2) whether union bargaining power, as proxied by the proportion of the labor force in an industry that is unionized, moderates the impact of import com-petition on union wage differentials. Unlike other studies, our emphasis is on the influ-ence of import competition on union rent seeking, rather than on union wages per se. Our primary results indicate that while import competition negatively and significantly affects union rent seeking, the extent of unionization does not substantially influence the impact of import competition on the union wage differentials. This is a somewhat surprising result since the literature suggests that union wages are greater in the pres-ence of stronger unions.     

The Effects of Labor Unions on Workplace Performance: New Evidence from France

How do unionization and collective bargaining affect firm profitability? In this paper, we revisit this question using a nationally representative sample of French establishments. In addition to examining union/non-union differences in profitability, we explore the possible sources from which unions capture profits. The results indicate that unionization in France is associated with poorer financial performance in the workplace. The results also indicate that concentration-related profits do not provide an important source of union rents in France. Finally, this study provides strong support for the hypothesis of union appropriation of the returns from long-lived physical capital.     

The impact of part-time employment on union density

Because part-time employees are less likely to be unionized than full-timers, increases in part-time employment may lower unionization rates. However, the size of the reduction, after controlling for other factors, has not been estimated. My results obtained from a probit analysis indicate that part-time status has a small, but significant, negative effect on the probability that a worker is a union member. Not surprisingly, as the working hours of part-time employees decrease, the negative effect increases. The results of this analysis also show that the negative effect of part-time variables had decreased between 1973 and 1989. I thank Darold T. Barnum of the University of Illinois, Chicago and Richard U. Miller of the University of Wisconsin, Madison for their valuable comments and support.     

Unionization and tenure and rank outcomes in Ohio Universities

We explore whether unionization affects tenure and promotion outcomes. Using data on 4,276 faculty from seven Ohio public universities, we find that unionization increases the probability that an individual will be tenured. Unionization also increases (decreases) the probability that an individual will be a full (assistant) professor. Moreover, unionization may standardize the promotion process across disciplines. The largest effect on the promotion process is related to length of service. Faculty who are with an institution longer are more likely to be tenured or in higher ranks. This result occurs for two reaization (1) The tenure and promotion processes are directly related to the number of years an individual works at an institution. Tenure decisions usually have time limitations, and although promotion decisions are not as directly tied to time, one generally becomes a full professor after the attainment of tenure and the rank of an associate professor; (2) Controlling for other factors, senior union faculty are more likely to be tenured or full professors, and they appear to be able to obtain higher ranks more easily. Our thanks to the session participants at the 1996 Missouri Valley Economics Association Conference, to Professor Michael Magura of the University of Toledo who provided most of the data and to an anonymous referree for insightful comments.     

Unions and coal mine safety: Comment

In a recent article in this journal, Appleton and Baker tried to account for the variability in mine injury rates by using several variables, one of which we claim to be an inadequate measure of the climate for safety brought about by unionization. In this paper, we criticize their empirical work for lack of documentation, misinterpretation of analyses, and poor model specification; and their generalizations to global union effects and to specific union practices. We also offer several suggestions that could improve the applicability of future research to decisions about whether coal miners’ unions beneficially influence their members’ safety. The authors would like to thank C. Bise, J. Kiusalaas, T. Long, and E. Ray from The Pennsylvania State University for their suggestions during the review of this article.     

Male-female differences in the potential for union growth outside traditionally unionized industries

Using recent NLS data on preferences for union representation, this paper examines whether differences by sex exist in the potential for union organizing outside of traditionally unionized industries. The methodology distinguishes between workers’ preferences for union representation and the relative supply of union jobs in explaining interindustry differences in the extent of unionization. Within the private sector, women employed in industries other than those traditionally unionized are found to have at least as strong a preference for unionization as do comparable men but a considerably lower opportunity for unionized employment given the desire for union representation. Comparing the public sector with traditionally organized industries, the greater extent of unionization in the public sector is largely explained by a stronger desire for union representation on the part of both male and female public sector employees. The helpful comments of Rodney Fort, Daniel Hamermesh, Robert Hutchens, and Jon Sonstelie on an earlier draft of the paper are gratefully acknowledged.     

The effect of unionization on safety in bituminous deep mines

This article examines the impact of unionization on safety in underground coal mines. An accident causation model is used to isolate the effect of unionization from other injury rate determinants. Results indicate that union mines experience more disabling injuries per year than nonunion mines,ceteris paribus. Previous studies attributed higher union injury rates to poor nonunion reporting practices. The data examined here suggest that other factors, including the UMWA’s job bidding system, low productivity, labor characteristics, and other institutional factors contribute to high injury rates at union mines. The authors acknowledge the helpful comments of Michael G. Finn, Clark G. Ross, and C. Louise Nelson. This research grew from work funded under contract DE-AC05-760R00033 between the Department of Energy and Oak Ridge Associated Universities. The views expressed and responsibility for errors or omissions belong to the authors.     

Unionization decisions of members and nonmembers of an employee association

The determinants of intent to unionize were investigated using the responses of 405 employees of a large public university, 243 of whom were members of an employee association. Members and nonmembers indicated significantly different levels of union vote intent, general beliefs, specific beliefs, and normative pressures. They also used a different union vote decision model. General beliefs about unions appear to play a significantly greater role in unionization decision of nonmembers. On the other hand, while considering unionization, specific beliefs about unions were significantly more important for association members. Association members were less likely to vote for unionization.     

Perceptions of union power,service, and confidence in labor leaders: A study of member and nonmember differences

Attitudes toward specific aspects of unionization held by the subjects of large national samples of the U.S. work force (the1977 Quality of Employment Survey) and the general population (the1972–1978 General Social Surveys) are examined in two separate analyses. Comparisons of the attitudes held by union members and nonmembers are made on specific dimensions of union power and service and confidence in union leaders. Nonmembers are found to have stronger perceptions that unions are influential in running the country and that unions are stronger than employers. Conversely, union members have stronger perceptions that unions offer protection, job security, improve wages and conditions of work, are worth their dues, and have greater confidence in union leaders. Discriminant analysis of data over a five-year period also revealed that union members have a stable higher confidence level in union leaders than nonmembers. Explanations for such union member and nonmember differences are hypothesized. The authors wish to acknowledge the assistance of Brent Schooley. An earlier version of this paper was presented at the Western Academy of Management meetings at Monterey, California, 1981.     

South/non-south differentials in national labor relations board certification election outcomes: Comment

A recent study of National Labor Relations Board (NLRB) certification elections concluded that there are no regional differences in the probability of unionization. This paper suggests that it is inappropriate to draw such broad inferences from NLRB data, since elections occur only where an initial preference for unionism has been expressed. Using a national data set on private sector hospitals, we demonstrate that Southern location significantly reduces the probability of having an election and the probability of negotiating a collective bargaining agreement, but it does not affect the probability of a union election victory. Opinions expressed do not necessarily reflect the views of the authors’ institutions. We would like to thank Peter Feuille and James Kuhn for helpful comments on an earlier version of this paper.     

The effect of the extent of unionism on union and nonunion wages

This paper provides estimates, derived from micro wage equations, of the effects of unionism on the wages for both union and nonunion labor. These equations control not only for union status, but also include measures of the extent of unionism in product and labor markets. The results suggest,inter alia, that an increase in the extent of unionization in an industry has substantial positive effects on the wages of nonunion as well as union workers. Increases in the extent of union coverage within an occupation, however, have little or no effect on nonunion wages.     

The effect of unionization on labor productivity: Some time-series evidence

This paper presents evidence concerning the effect of unionization on the average productivity of labor using time-series data from the private, domestic sector of the U.S. economy over the 1948–73 period. Aggregate technology is specified by a constant-returns-to-scale, Cobb-Douglas production function which incorporates union and nonunion labor and proxies for both embodied and disembodied technical change. Maximum likelihood estimates of the model indicate that union membership significantly decreased average labor productivity, holding constant the quality and mix of capital and labor and controlling for cyclical effects. I thank John Addison, Maxim Engers, Barry Hirsch, William Johnson, Duane Leigh, Roger Sherman, and Jonathan Skinner for helpful comments on an earlier version of this paper. Of course, responsibility for remaining errors is mine.     

The choice between union membership and free-rider status

Free riders are employees who are covered by collective bargaining agreements but are not union members. This article examines the choice between free-rider status and union membership. A discriminant analysis of data from the 1988Current Population Survey identifies employee characteristics that distinguish free riders from union members. Factors influencing the decision to be a free rider, including the knowledge of available options, the preferential treatment of union members, the value of reputation, and union consciousness are discussed. A probit analysis determines the extent to which earnings and proxy measures for the value of reputation and union consciousness affect free-rider status. Suggestions are made for extending the study of the free riders and for the design of internal organizing campaigns. The authors thank an anonymous referee for helpful comments.     

The impact of unionization,right-to-work laws,and female labor force participation on earnings inequality across states

This study examines the effect of unionization, right-to-work laws, and participation of women in the labor force on income inequality. Two distinct models are developed using 1970 and 1980 census data on the 50 states in the U.S. First, an income inequality model is specified as a beta distribution of the second kind to estimate Gini measures of income inequality. Second, these Gini estimates are used in a simultaneous equations model. The 1970 results indicate that higher unionization rates decreased inequality while right-to-work laws increased inequality. In 1980, the measure of inequality was lower in states with higher female labor force participation. We thank an unknown referee and the editor for comments and criticisms that greatly improved the paper. The usual caveat applies.     

Induced inefficiency as a response to the union threat

Milkman and Mitchell (1995) extend Rosen’s (1969) threat-effect hypothesis to suggest that the threat of unionization can induce inefficient underutilization of labor by nonunion firms. If firms follow this strategy, the apparent paradox of competitive coexistence in the face of higher union wages reflects induced nonunion firm inefficiency rather than superior union firm efficiency. Furthermore, this strategy decreases demand for nonunion workers in a partially unionized industry. A generalized cost function analysis of data from sawmills in the Pacific Northwest yields evidence that nonunion firms use this strategy.     

An analysis of the barriers to women becoming local union officers

This study examines the importance of barriers to the participation of women in local union activities. Male and female officers of local unions in Canada were surveyed to determine the importance of eight barriers to participation. The results indicate that the most important barriers are that women hold two jobs (at home and at work) and have no time for union activities; child care responsibilities prevent greater participation in unions; and women underestimate their abilities and believe that male employees are better suited to union officer positions. The analysis also explores differences in male and female ratings. Conclusions are reached regarding the importance of overcoming barriers at local levels in reducing the under-representation of women in national union governance. This study was supported by grants from the Canada Department of Labor and the University of Windsor. The authors wish to thank Elizabeth Rutherford for her research assistance.     

OUTSOURCING AND UNIONIZATION: A TALE OF MISALLOCATED (RESISTANCE) RESOURCES

While many believe the growth in outsourcing contributed to the decline in U.S. unionization up to the 1990s, this argument has never been investigated systematically. In this article, we analyze the effect of outsourcing on unionization between 1973 and 1993. Instrumental variables estimation shows outsourcing contributes to higher quasirents and industry productivity. We find the union wage premium increases with the extent of outsourcing—both for workers that are substitutable by outsourcing services and workers in jobs that are not substitutes of the tasks being outsourced. Finally, we find no support for the claim that outsourcing reduces unionization. (JEL J5, L2, L6)     

Direct and indirect effects of unionization on the wage levels of nurses: A case study of New Jersey hospitals

This study examines the determination of wage rates for nurses in hospital employment. Of particular concern is the effect of the recent increase in unionization by nurses on their wages, both directly and indirectly via threats from competing hospitals’ unionization. To improve on earlier work, the data are disaggregated and gathered from only one state to standardize for the legal, licensing, and reimbursement systems. We also look at the difference between highly skilled professional nurses, RN’s, and more general and less professional nurses, LPN’s. The results show that working conditions and competition in the market influence the wage rate as one would expect. The unionization of nurses, however, affects the wage levels differently for the two groups. We would like to thank Professors Robert Higgs and Alan Childs of Lafayette College, Professor David Fairris of Williams College, Professor James C. Luzier of Muhlenberg College, and an anonymous referee for their helpful comments and suggestions.     

Interstate Variations in Private Sector Union Density in the U.S.

This paper uses union density variations across state and state-industry cells in 1985, 1995, and 2005 to examine the factors that contributed to the decline in private sector unionization in the U.S. In addition to the conventional variables, it develops two measures to gauge the effects of union-management strife. Estimations indicate that union density varied directly with union organizing efforts and inversely with the employer opposition to unionization. Decomposition analysis reveals, however, that these variables do not explain why union density declined because changes in their marginal effects were favorable to unionization. Declining union density instead is attributable mostly to the shift factors subsumed under the intercept term over 1985–1995, and shift factors cum negative changes in sensitivity of unionization to workforce characteristics over 1995–2005.