Unions and wage inequality

Summary and Conclusions The impact of unions on the structure of wages has recently attracted renewed interest as analysts have struggled to explain the rise in earnings inequality in several industrialized countries. Canada, the United Kingdom, and the United States provide a potentially valuable set of countries for examining this question. All three countries now collect comparable data on wages and union status in their regular labor force surveys. Several features of the collective bargaining institutions of these countries make them suitable for studying the relationship between unions and wage inequality. Bargaining is highly decentralized; there are no general mechanisms for extending collective bargaining provisions beyond the “organized” sector; and the fraction of the work force covered by collective bargaining is relatively modest. Thus it is possible to compare the structure of wages for workers covered by union contracts to those who are not covered, and potentially infer the effect of unions on overall wage inequality.     

The effects of management practices on union election returns

This paper examines the importance of management suppression tactics on union activity in the United States. NLRB data on individual certification elections which have recently become available for the period 1972–1976 are merged with structural, demographic, and industry characteristics of the 96 largest SMSAs to ascertain the role of strategy versus structure in explaining union outcomes. The measures of election-generated membership outcomes are voter participation, the margin of pro-union votes, and union wins. Union suppression practices under study include consent elections, election delays, formal objections after unions win a certification election, elections overruled because of management unfair labor practices, elections held by management petition, and the number of unfair labor practice charges per representation election. Five of the six measures of suppression are significant determinants of some facet of union expansion after adjusting for structural characteristics of the area work force.     

The state of the unions: United States and Canada

This study demonstrates that the Canadian labor movement has outperformed its American counterpart in terms of union growth, union density, and certification outcomes. Labor and product market factors do not appear to be major contributing factors. Public policy and increased employer resistance have played a critical role, particularly in the decline of unionization in the United States. Union-related variables — militancy, structure, and the desire and ability to organize — are also important in explaining the divergent union trends in the two countries.     

Formalization,collectivization, and the demand for union services

Formalized collective bargaining rather than individual employer-employee negotiation is the fundamental characteristic of a unionized labor market. Formalization involves the substitution of rules for employer discretion. Collectivization substitutes simultaneous decision making on behalf of all workers in a unit for a set of individual employee decisions. Formalization and collectivization are present in nonunion as well as union labor markets and their extent varies within as well as between these two sectors. In particular, individuals may negotiate where they belong in a union environment, and the presence of rules invites negotiation over their interpretation. Nevertheless, because formalization and collectivization are obvious concomitants of trade union organization, their costs to both employers and employees should explain the probability of union organization, as well as the incidence of such antecedents of the modern trade union as the Italian padrone who acted as foreman, pay-master, and employment agency for newly-arrived immigrants to the United States; and the Indianjamdar, a construction industry recruiter-foreman. Our occasional observations of union-induced costreductions may appear to counter the implicit assumption in much of the trade union literature that unions always induce suboptimal combinations of factor inputs and factor payments (nonunion firms could choose union-induced parameters on their own and do not). Because these cost reductions may be accompanied by increased costs imposed by unions, however, the cost reductions discussed below imply nothing about overall effects of unions on employers or employees. I wish to thank John Pencavel for helpful comments on earlier versions of this paper. For further analysis of these points, see Flanders (1968). See Epstein and Monat (1973) for a discussion of the services provided by labor contractors.     

Parenthood,Gender and Work‐Family Time in the United States,Australia, Italy,France, and Denmark

Research has associated parenthood with greater daily time commitments for fathers and mothers than for childless men and women, and with deeper gendered division of labor in households. How do these outcomes vary across countries with different average employment hours, family and social policies, and cultural attitudes to family care provision? Using nationally representative time‐use data from the United States, Australia, Italy, France, and Denmark (N = 5,337), we compare the paid and unpaid work of childless partnered adults and parents of young children in each country. Couples were matched (except for the United States). We found parents have higher, less gender‐equal workloads than nonparents in all five countries, but overall time commitments and the difference by parenthood status were most pronounced in the United States and Australia.     

State of the unions: Assessment by elite American labor leaders

One hundred and sixty-four elite union leaders in the United States completed a survey to assess the condition of the American labor movement and the factors affecting it. The respondents included high-level international union and state federation officers, central labor presidents, and 58 shop stewards. This study compares the responses of these labor officials and finds that they have similar, negative assessments of the condition of the American labor movement. The study also finds that these leaders agree that the most important factors affecting the labor movement are collective bargaining rights, union leadership, union member solidarity, and the NLRB.     

FIRMS AND FLEXIBILITY

The United States and France have very similar labor productivity levels while there are considerable differences between the firm‐size distributions and firm dynamics in the two countries. To reconcile these observations we introduce a joint model of endogenous entrepreneurship and firm‐size dynamics with firing costs, unemployment benefits, entry costs, and a tax wedge between wages and labor costs. We use our model to analyze the role of these rigitidies in explaining firm dynamics and productivity patterns in the United States and France. We find that our model with all rigidities goes a long way in accounting for firm‐size differentials between the United States and France while generating similar labor productivity outcomes. (JEL C78, D21, E24, J6)     

Age and sex in the occupational structure: A United States-Japan comparison

Seniority and experience are more important in Japanese than American labor markets. This article examines the way that these factors are reflected in patterns of age and sex segregation in the occupational structures of the two countries. Occupationalage segregation is greater in Japan than in the United States: There are larger age differences among the incumbents of major occupational groups in Japan, and managerial and administrative occupations in particular are dominated by older males. In contrast, occupationalsex segregation is slightly lower in Japan than in the United States. This nonintuitive result is due to the greater apparent integration of Japanese women into low-status white-collar and blue-collar occupational groups, resulting from particular labor market processes in those groups.Earlier versions were presented at the International Sociological Association meetings in Madrid, Spain, July 1990, and at the American Sociological Association meetings in Washington, DC, August 1990.     

The effect of labor relations climate on the union participation process

Research examining union member attitudes and behaviors have produced inconsistent results for key relationships in models of union participation. Social information processing theory suggests that a contextual variable, labor relations climate, should systematically influence the attitudinal variables in these models. Our meta-analysis shows that labor relations climate moderates four of five key relationships. Consequently, theory on union member participation should be altered to reflect the recent emergence of less adversarial union-management relationships.     

The changing determinants of U.S. Unionism: An analysis using worker-level data

In contrast to much of the literature examining the decline of trade unions in the United States, I examine the decline from the perspective of the individual employee. Worker-level data combined with industry-level data for the years 1972 and 1987 are used to investigate the decline. The central findings are that the changing sex and race composition of the labor force and increases in management resistance have had little influence, while gains in educational levels, changing occupations, and reductions in the economies of scale of union organizing have contributed greatly to the decline.     

Challenging Misconceptions about Organizing Women into Unions

In many countries, women are the fastest growing group of unionized workers. As unions scramble to restore their flagging membership, women become central to the process of union membership renewal. Yet survey data collected from union organizers in Canada show that unions are only partially meeting women’s demand for union representation, in large part because of gender bias in union organizing practices. To develop this argument, this article offers data analysis that challenges four popular misconceptions about women and unions which contribute to gender bias in union organizing practices. These misconceptions are: women are less likely to support unions than men; high rates of unionization in the public sector rather than women themselves explain the high rates of union growth amongst women; small workplaces are a particular barrier to organizing women and women are more passive and avoid conflict, therefore reducing their likelihood of withstanding a hostile organizing drive. Having challenged these misconceptions, the article concludes with a discussion of the many ways in which union organizing practices are gender biased. Issues discussed range from the limited number of women hired as organizers to the tendency of unions to target small male‐dominated workplaces for organizing, over women‐dominated workplaces, in spite of the latter’s greater likelihood of success.     

Union activity and the decline in American trade union membership

This paper extends recent research on the determinants of the decline in union membership in the United States. Using biennial state-level data for a set of years between 1958 and 1982, my model tests “union organizing,” “structural,” “management opposition,” and “public policy” hypotheses concerning union membership and suggests improved specifications of each of these hypotheses. The paper also examines the relative importance of each factor in explaining the decline in unionization. The results support each of the hypotheses and confirm previous findings that changes in the structure of the labor force are most important in explaining union membership decline.     

Shared Beliefs and the Union Stability of Married and Cohabiting Couples

Cohabiting couples and couples who cohabit prior to marriage have less stable relationships than married couples who did not cohabit, and these differences in stability may be linked to different processes within the relationships. This research examines the similarity of partners’ beliefs about the division of household labor using the National Survey of Families and Households (N = 1,039), finding that couples who do not share beliefs about the division of household labor are more likely to end their union. Cohabiting couples have a particularly high likelihood of ending the union when the two partners hold widely divergent views about whether housework should be shared, suggesting that cohabiting and married couples may have different responses to dissimilarity between the partners.     

Déjà vu for airline industrial relations

Fifteen years after deregulation, labor relations in the airline industry returned to thestatus quo ante, as union power, particularly ALPA’s, still dominates. Without a long-term shift in bargaining power between the parties, costs and productivity have not changed much. Labor accounts for 60 percent of the cost difference between strong and low-cost carriers. American, Delta, United, Northwest, and USAir would require some combination of labor cost concessions or productivity increases of $1.6 billion to match the productivity-adjusted labor costs for low-cost carriers’ flight crews. To remain competitive, strong carriers and unions must develop strategies to deal with anachronistic work rules, provisions to contract out work, and premium pay for airline employees.     

Immigration and the Transformation of American Unionism

Does immigration hamper union organizing in the United States? The prevailing literature strongly suggests that it does and for two reasons: first, immigrants increase the labor pool and diminish union influence over the labor market. And second, immigrants may be harder to organize than native workers. In this dominant view, unions are well served to restrict immigration and have always done so. But how, then, to explain the fact that American labor has long been deeply divided over the response to immigration? Drawing on new archival research and interviews, this paper uncovers a neglected side of American labor history in which many union leaders have extended solidarity to immigrants and sought to organize them. Moreover, analysis of time series data on immigration and union density corroborates the implicit theory of this alternate account of labor history: immigration has, in fact, no statistically significant effect – either positive or negative – on union density over time. Depending on specific conditions and strategies, unions can and have been successful in organizing during periods of high immigration.     

Different Contexts and Trends: Latina Immigrant Fertility in the US and Spain

This article provides the first cross‐national assessment of Latina immigrant fertility trends. Specifically, we compare Ecuadorian women in Spain (EiS) to Mexican women in the United States (MiUS). We focus on these two groups because they (1) have similar socio‐economic profiles and (2) are the largest Latina subgroups in their respective host countries. We show that since 2001, the fertility rate of EiS has declined substantially more than the fertility rate of MiUS has. Drawing on census and administrative data in both countries, we assess four factors that might explain this difference: economic cycles, linguistic affinity, labor market participation, and education. We argue that labor market and education factors can best help to explain Latina fertility patterns. We conclude by discussing the findings with regard to contemporary arguments about Latino culture and immigrant fertility, and by describing the study's policy implications.     

Decomposing Gender Beliefs: Cross‐National Differences in Attitudes Toward Maternal Employment and Gender Equality at Home

Few cross‐national studies distinguish between different aspects of gender egalitarianism and compare them systematically. In this study, we examine cross‐national differences in attitudes toward mothers' participation in the labor market and toward gender equality within the household, using a multilevel analysis of individual data from 33 nations. The results indicate greater support for employed mothers, but a lower level of approval of gender equality at home, among residents of countries that offer women more educational and economic opportunities. We argue that macrolevel gender equality increases individuals', particularly women's, incentives to support female labor force participation. Because of a persistent belief in gender differentiation, however, macrolevel gender equality has the opposite relationship with attitudes toward altering gendered practices beyond enabling women's public sphere participation. The fewer explicit barriers to women's achievement in society, the more likely individuals will feel a need to defend gendered roles in the private sphere. That the potential harm of advocating gendered practices in the private sphere is smaller in societies with fewer impediments for women is also likely to account for the negative association between macrolevel gender equality and support for egalitarian gender roles at home.     

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.     

Disabling Environments and the Geography of Access Policies and Practices

Writings about disabled people are usually aspatial or lack geographical frames of reference. This is curious because geography is fundamental to an understanding of the social, economic, and political opportunities and/or constraints underpinning the lives of disabled people. This paper develops the contention that geographical and/or spatial terms of reference are important in understanding disabled people's lives. In developing this point, the paper seeks to describe and account for geographical variations in local authority policies and practices in addressing disabled people's access needs in the built environment. The paper adopts and develops, after Mark-Lawson & Warde (1987), the concept of 'local political environment' as a basis for understanding spatial variations in local authority policies and practices. Such ideas, in turn, are deployed with reference to postal survey and case study data, where I describe and explain aspects of the geography of access policies and practices in the United Kingdom. I conclude by noting that geographical frameworks and/or perspectives ought to be incorporated, where appropriate, into studies of disabled people and public policy processes.     

Labor market contracting and wage dispersion

This paper uses a variety of data sources to document the effect of long-term contracts (LTCs) on wage dispersion. The paper first shows that LTCs are responsible for the decrease in wage dispersion observed as labor markets tighten; absent LTCs (as in most other advanced nations outside North America), this effect does not exist. The paper next examines the relationship between cost-of-living escalators (COLAs) and wage dispersion. COLAs are typically found only in those countries that rely on LTCs, although the incidence of COLAs in these nations is affected by inflation variability. Thus, in the United States, COLAs became much more prevalent in long-term contracts during the 1970s, which caused an increase in wage dispersion, particularly between the union and nonunion sectors. The paper concludes that, despite some suggestions that we ban LTCs and COLAs because of their perverse effects on wage dispersion and other economic outcomes, such a ban would be unwise in light of historically high levels of industrial strife in those nations that rely on these contractual devices.