The impact of organized labor on public employment: A comparative analysis

This paper examines the political economy of public employment, specifically the impact of labor unions on public employment across 20 OECD nations during the 1965–1983 period. A theoretical paradigm based on exchange theory is used to explain the rationale for organized labor’s role in public employment. A model is then presented and tested to explain variation in public employment levels across the 20 nations. The results of the analyses support the central hypothesis that labor union power is positively correlated with public employment. Following the data analysis, the conclusions and implications of the findings are discussed as they pertain to the political economy in advanced industrial democracies.     

American trade unions and public approval: Can unions please all of the people all of the time?

Public opinion about labor unions has long been viewed as an important determinant of industrial relations outcomes. Yet, analyses of changes in union popularity over time have been largely qualitative and have focused on the impact of short-term idiosyncratic events. This paper provides a quantitative analysis of the determinants of American public approval of unions from 1936 to 1991. Hypotheses relating to the union wage advantage, strike activity, the national unemployment rate, and World War II, receive the strongest support. The implications of these results for organized labor and future research on attitudes toward unions are discussed.     

Union Organizing and Labor Outreach in the Contemporary United States

Despite their long decline, labor unions increasingly find themselves in the news. From the spirited debate over income inequality, to fights over minimum wage and the unlikely mobilization of fast food workers at the very bottom of the American labor market, labor issues are of great public interest. In this article, I review scholarship on contemporary union organizing and outreach activity. This work suggests that while innovative organizing and outreach strategies, sometimes lumped together under the rubric of “social movement unionism” and “alt‐labor,” are demonstrated to be effective in advancing union causes, only a handful of unions appear to have the will and resources to utilize them. Moreover, while the implementation of new organizing and outreach strategies has been uneven and has not boosted union membership nationally, organized resistance to unions, from court rooms to state legislatures, has increased substantially.     

Labor Union Political Strategy in an Era of Decline and Revitalization

U.S. labor unions faced sharp membership losses over the last few decades, and some responded by ushering in a new, revitalized model of organizing. Yet we know little about how these forces may be shaping the political activities of the labor movement. Has crisis prompted unions to take aim at public policies inhibiting union vitality, or have unions turned outward to embrace broader social causes? This paper uses an original dataset of union appearances in congressional hearings to analyze unions’ legislative advocacy activities. Findings suggest substantial differences between those unions that are likely to appear in hearings on core labor‐related topics and those that appear in hearings on broad social issues: AFL‐CIO unions are more likely to participate in hearings on core labor issues, while unions commonly cited as “revitalized” and public sector unions are more likely to appear in hearings on broad social issues.     

Public employee unions: A study in the economics of power

This paper examines how public employee unions influence the allocation of public sector jobs. The empirical results indicate that vote maximizing public officials’ employment decisions are influenced by the political clout of highly-unionized employees. The political clout of public-sector unions influences the functional distribution of public-sector jobs by increasing demand for the relatively more organized functions. These results suggest that consideration should be given to the growth of public sector collective bargaining in the allocation of public sector resources. The author wishes to acknowledge the helpful suggestions of Bernard Lentz.     

The Role of Organized Labor in Civil Society

Organized labor has served as a valuable element of civil society. The focus of this inquiry is how the decline of organized labor contributes to the weakening of the civil sphere. I first assess how unions have historically contributed to the positive functions of civil society. I then review the various factors that have led to the deterioration of organized labor and comment on the current state of the labor movement. I conclude with a discussion of the implications in terms of civil society and market culture.     

Labor unions in the american economy: An analytical survey

Study of labor unions again is moving to the forefront of economists’ attention. This resurrection of interest stems from two sources. First, econometric studies indicate that the impact of unions on wages is varied. Further, the absence of theoretical foundation for analysis of labor unions now is appreciated widely. But recent developments in theories of agency, of public choice, and of property rights promise progress toward a better model of labor unions. That model built, the impacts of unions can be ascertained. Allen Dalton and Don Leavens provided able research assistance.     

Private school competition and public school teacher salaries

Teacher unions have fiercely fought public policy measures (e.g., vouchers, tuition tax credits) that might increase the proportion of students attending private schools. Yet increased competition in the educational service market should also lead to greater labor market competition, reducing any quasi-monopsony tendencies depressing teacher salaries. Using detailed data on over 600 Ohio school districts, we find that increased private school competition leads to higher salaries for public school teachers. It may be that union leaders disregard the interests of their members in trying to maximizing union size and power. An alternative interpretation is that unions sacrifice shortrun income gains for their members in order to maintain longterm economic rents associated with substantial political power.     

Unions and productivity: Evidence from academe

In order to test competing hypotheses about the effect of unions on labor productivity, we examine research performance in a sample of 889 Ph.D.-granting departments (175 unionized) in public universities. We find no support for the hypothesis that unions enhance productivity in academe. If we compare union and nonunion departments endowed with (sample) mean amounts of labor and capital, we find that unionization is associated with a 17 percent reduction in output of published articles and a 9 percent reduction in peers’ survey evaluations of a department’s level of scholarly achievement.     

The future of public sector unionism in the United States

The future of nonpublic safety, non-teacher, non-federal public sector unions is bright. As a result of past success, the unions, led by AFSCME, have an organizing culture and sufficient power within the sector to maintain and increase density. However, the challenges that lie ahead in the 21st century will surely test the strength of AFSCME and the other public service unions. The large gains in public employee membership achieved in the last third of the 20th century are not likely to come with the relative ease with which they were achieved during that period. The remaining unorganized workers are in locations and occupations that have not been historically fertile ground for unions, public or private. In addition, the threat of privatization of jobs requires public unions to re-think their traditional strategies and organize in the more hostile private sector while simultaneously protecting the public sector from attacks. The public sector unions recognize that they have a tenuous grasp on their relatively strong position and must organize to maintain and strengthen their position. Absent dramatic changes in federal private sector labor law, and adoption of numerous public sector labor laws, the resources necessary for organization will be tremendous. The future is bright for the public sector unions only because they have demonstrated a willingness to adapt to change, make sacrifices, and deploy sufficient resources to achieve growth. The views herein are the author’s and do not necessarily represent the views of AFSCME.     

The long-run and short-run impacts of global competition on U.S. union wages

Union opposition to trade liberalizing agreements suggests that international trade harms organized labor. Using union contract data, we assess both long- and short-run impacts of international trade on U.S. collective bargaining outcomes. Results indicate that, in the short run, increases in either imports or exports reduce union wages. This is attributed to risk aversion on the part of both unions and management. In the long run, however, trade has little net impact on average union wage settlements. In forming their opposition to more open U.S. trade policies, unions appear more concerned with short-run impacts of trade and are willing to trade-off immediate wage gains in lieu of future employment possibilities. We thank Dan Rickman, Bill Levernier, and the anonymous referee for their useful comments.     

Violence by U.S. labor unions

During the early 1800s, most violence connected with labor disputes was committed spontaneously by unorganized groups of workers. During the twentieth century, the pattern changed and most violence was caused by workers organized into unions. Although no statistics have been completed on how much violence has been committed by labor unions in the United States until recently, some indication may be obtained by examining National Labor Relations Board charges of violence filed against unions. Theories of striking and violence are discussed and an evaluation of theories on future trends in violence is made.     

Private sector unions: The myth of decline

Conventional wisdom holds that private sector labor unions are in “crisis” due to the loss of millions of members over the past two decades which has resulted in a dramatic decline in their economic viability and political power. Financial data for selected years between 1960 and 1987 are analyzed to show that, contrary to prevailing opinion, private sector unions are financially prosperous despite membership erosion. Evidence is also presented which indicates that union political efforts and influence have increased rather than declined in recent years. Resources have been allocated to political advocacy to obtain a more favorable public policy environment for labor organizations and to achieve gains that have eluded unions in collective bargaining. The author gratefully acknowledges the assistance of Ms. Sybil Jones at the National Institute for Labor Relations Research.     

District elections and the power of municipal employee unions

Very little prior research has been devoted to the effects of the institutional structure of local government on public sector labor markets. This study addresses the differential effects of the two main systems used to elect city council members — district versus citywide (at-large) elections. The study hypothesizes that, in district-election cities, municipal employees, especially those who are unionized, face a lower cost of influencing city council candidates and, consequently, will have greater power to influence employment conditions. To test this hypothesis, data on U.S. cities over 25,000 population are used to estimate both reduced form and structural wage and employment equations. The results are consistent with the basic hypothesis: district elections provide a more fertile ground for municipal employees, especially those organized in unions, to affect their employment conditions. The authors acknowledge the helpful comments of Tim Sass, Tom Means, and participants in a session at the 1991 Public Choice Society meetings.     

Labor and the democratic party: A report on the 1998 elections

The nature of the relationship between organized labor and the Democratic party — still much debated among scholars —can be usefully examined through an analysis of the role of unions in the 1998 congressional elections. Evidence drawn from a wide range of sources shows that the AFL- CIO and its affiliated unions devoted considerable financial and organizational resources to mobilizing union members and allied con-stituencies to vote for Democratic candidates. Combined with the unions' direct finan-cial contributions to campaigns, this activity made unions important players in the elections and helped project an image of potency and effectiveness in the news media and among politicians. As a result, the labor/Democrat alliance remained stronger than one would expect on the basis of union density figures alone.     

The Construction and Mobilization of Unemployed Interests: The Case of Sweden in the 1990s

In this paper, using a case of unemployed mobilization in Sweden in the 1990s, we examine the interpretive process by which unemployment interests emerge and evolve in public interactions with other political actors, especially unions, and argue that unemployed mobilization episodes cannot be fully understood without attention to interpretive processes. More specifically, we show how unemployed interests during the unemployment crisis in the 1990s initially were aligned with the labor movement at large, later became aligned with unions against the Social Democrats, and eventually gave rise to an independent federation of unemployed groups, which subsequently collapsed.     

Perspectives on union corruption: Lessons from the databases

Most of the surprisingly small number of studies of union corruption done over the years have focused either on longitudinal analysis of particularly aggressive unions in their prime or on the relationship between union leaders and organized crime characters who have acquired middle names in quotes. Since the 1930s, these studies have usually been based on prosecutorial initiatives of federal or state agencies seeking to rein in Mafia, Cosa Nostra, or Outfit crime families for whom control of unions has been a major income source, not the unions, themselves. I use two new, recently available data sources that allow an overview of the whole spectrum of union corruption, that quantify it, and that differentiate certain aspects of it from the corruption found in other societal organizations. My analysis reveals that union corruption is both broadly practiced and multifaceted, with some forms having brutal ancient antecedents not yet completely lost while others are new and not yet completely developed. Only a few are broadly shared with businesses or other societal organizations. Overall, I identify 25 separate categories of significant union corruption and find that among these embezzlement remains the most common, but kickbacks and malfeasance with respect to pension plan management are of much greater financial concern. Peculation associated with gaining and maintaining high union office together with the bloated perks and emoluments that obtain thereto fuel internal corruption without diminishing the practice of extortion, bribery, conspiracy, selling labor peace, licensing loose contracts, selling job access, and other traditional external corrupt practices. All are a blight on organized labor.     

Workers, Unions, and Takeovers

How do takeovers affect workers?? wages and job security in the short-run? What role does the labor union play in mitigating these effects? I answer these two questions by analyzing wage and employment outcomes of over 4,000 public firms that were acquired between 1981 and 2002, using establishment-level data from the U.S. Census Bureau. I find that target establishments exhibit a net contraction in wages and employment, relative to comparable establishments after takeovers. Targets?? establishments in more unionized industries experience worse wage and employment outcomes after takeovers. These adverse effects are exacerbated when the establishment is located in a state with Right-to-work laws where unions face a less favorable bargaining environment. These findings indicate that target firms?? employees are negatively affected by takeovers and that their labor unions do not mitigate these negative effects.     

THE POLITICAL ECONOMY OF MINIMUM WAGE LEGISLATION

Two questions are addressed in this paper. (A) Why do labor unions and certain employer organizations respectively promote and impede minimum wage legislation? (B) Do these groups have significant impacts on minimum wages? Question (A) is examined in the context of models that identify the economic self-interest of unionized skilled workers and capitalists in legal wage floors. Question (B) is approached by a median legislator utility maximization model that leads to Tobit estimation of the relationship between state minimum wage rates and measures of statewide organized labor and capital and average hourly earnings.