Membership and wage impact of right-to-work laws

This paper examines the effects of “Right-to-Work” laws on union membership and on the earnings of union and nonunion members. Using regression analysis, we find that once the simultaneous equations bias between the degree of unionization and RTW laws is eliminated, RTW laws have no statistically significant influence on union membership. Similarly, using a human-capital earnings model, we find that RTW laws have no significant influence on the wages of all workers, union workers, or nonunion workers. However, we did find evidence that such laws may promote aggressive union wage policies resulting in a larger union/nonunion relative wages advantage in RTW states than in non-RTW states.     

Nonmarital Childbearing, Union History, and Women's Health at Midlife

Despite high rates of nonmarital childbearing in the U.S., little is known about the health of women who have nonmarital births. We use data from the NLSY79 to examine differences in age 40 self-assessed health between women who had a premarital birth and those whose first birth occurred within marriage. We then differentiate women with a premarital first birth according to their subsequent union histories and estimate the effect of marrying or cohabiting versus remaining never-married on midlife self-assessed health, paying particular attention to the paternity status of the mother's partner and the stability of marital unions. To partially address selection bias, we employ multivariate propensity score techniques. Results suggest that premarital childbearing is negatively associated with midlife health for white and black (but not Hispanic) women. We find no evidence that these negative health consequences of nonmarital childbearing are mitigated by either marriage or cohabitation for black women. For other women, only enduring marriage to the biological father is associated with better health than remaining unpartnered.     

WHAT DO UNIONS DO TO PENSION PERFORMANCE?

Unions can have either positive or negative effects on risk‐adjusted returns in pension plans. On the positive side, a union can improve monitoring of pension advisors and asset managers. On the negative side, the union may sacrifice returns by making investments that promote union goals. This paper discusses how the structure of the pension plan affects the union's ability and willingness to sacrifice returns to promote union goals. Using panel data on over 38,000 pension plans drawn from IRS Form 5500 filings between 1988 and 2008, we find the lowest performing plans are unionized multi‐employer plans. Among defined contribution plans, the underperformance of multi‐employer union plans disappears when the pension is controlled by individual participants. (JEL J32, J51)     

Union wages, rents, and skills in health care labor markets

We examine the effect of unions on the earnings of health care workers, with emphasis on the measurement and sources of union wage premiums. Using data constructed from the 1973 though 1994 Current Population Surveys, standard union premium estimates are found to be substantially lower among workers in health care than in other sectors of the economy, and to be smaller among higher skill than among lower skill occupational groups. Longitudinal analysis of workers switching union status, which controls for worker-specific skills, indicates a small impact of unions on earnings within both high and low skilled health care occupations. Evidence is found for small, but significant, union threat effects in health care labor markets. It has been argued that recent legal changes in bargaining unit determination should enhance union organizing and bargaining power. Although we cannot rule this out, such effects are not readily apparent in our data. The authors appreciate the assistance of David Macpherson, who helped develop the CPS data files used in the paper.     

The impact of union direct voice on voluntary and involuntary absenteeism

Using a Spanish panel of large establishments, we test the reliability of the exit-voice theory to understand absenteeism (making the distinction between voluntary and involuntary absences). In the Spanish institutional framework, union direct voice (as opposed to union representative voice) is proxied by the existence of a collective agreement at the firm level. We find a positive influence of union direct voice on involuntary absenteeism, which is consistent with a greater protection of workers’ rights through that institution. We do not find a robust effect of direct voice on voluntary absenteeism. The first result lends support to the exit-voice theory but not the second one. Our interpretation underlines the need for re-construction of the exit-voice theory as a more general and precise one.     

Effects of financial insecurity on social interactions

Little is known about the effects of financial insecurity on social interactions despite consistently observed income effects on social capital and a growing recognition of the potential importance of income volatility in affecting hardships, distress, and other aspects of well-being. We use data on women participating in a longitudinal study in the U.S. to investigate the effects of financial insecurity measured along two dimensions (safety nets and hardships) on two types of social interactions (participating in community organizations and having close friends). In auxiliary analyses we explore the potential mediating effects of mental health. We find that safety nets in the form of bank accounts, credit cards, and ability to borrow money increase both participation in organizations and friendships, whereas material hardships decrease friendships but increase participation in organizations. We find no evidence that mental health, as we have measured it, mediates the observed effects of financial insecurity on social interactions, although it has strong and negative independent associations with having close friends.     

Residential Differences in Cohabitors' Union Transitions*

Abstract Using data from the 1995 National Survey of Family Growth, we examine residential variation in cohabiting women's union outcomes. Prior work has shown that although there are no residential differences in cohabitation, nonmetro women are more likely than others to marry directly and hold more favorable attitudes toward marriage. Building on this work, we examined residential differences in cohabiting women's union outcomes (i.e., marriage, separation, or remaining intact) to test whether nonmetro cohabiting women's unions are more likely to “end” through marriage, and whether pregnancy has a larger positive effect on marriage entry among this group. We find that nonmetro women are less likely to remain in cohabiting unions and are more likely to either marry or separate during the first 24 months of the cohabiting union. Pregnancy during cohabitation encourages marriage and discourages separation, but these effects are not significantly larger for nonmetro women.     

Does the positive relationship between health and marriage reflect protection or selection? Evidence from middle-aged and elderly Japanese

This study investigates the marriage protection and selection effects among middle-aged and elderly Japanese. Using 9 years of a longitudinal data set from a nationally representative survey in Japan from 2005 to 2013, we extract 15,242 respondents aged 50–59 years in the baseline year. We utilize positive self-rated health to present subjective health status and lifestyle diseases to present objective health status. Using dynamic panel data approach to control for endogeneity issue, we find that being married does protect respondents’ subjective health, in terms of a higher probability of self-ratings of “very good” or “good” health statuses. Nonetheless, we find that marriage deteriorated their objective health in terms of a higher probability of having lifestyle diseases. Regarding the selection effect, better subjective health is found to select middle-aged and elderly Japanese into marriage, but such influence is fairly modest. Although objective health status also selects respondents into marriage, it positively affects women but adversely affects men. The findings provide a more comprehensive understanding of the relationship between marriage and health, which may have substantial implications for health-related public policies for middle-aged and elderly people in Japan.     

The effects of childhood neighborhood conditions on self-reports of adult health

Studies have shown that neighborhood conditions and experiences may individually or collectively impact health. Using 38 years of longitudinal data from the Panel Study of Income Dynamics (PSID), we clarify the relationship between child and adult neighborhood quality and self-reported adult health, using sibling fixed effects models. Overall, we find support for positive long-term health effects, both for growing up in affluent neighborhoods and for growing up in neighborhoods where one is surrounded by comparative advantage. Relative to childhood neighborhood factors, adult neighborhoods have little to no effect in almost every model specification. We find mixed evidence, as well, that these relationships are stronger for nonwhites than for whites. Our findings suggest that childhood is a critical point for intervention in the long-term health effects of residential conditions.     

Union rents and market structure revisited

Several recent studies give conflicting evidence on whether market power associated with industry concentration is an important source of union rents. Using a 1977 sample of 327 four-digit manufacturing industries, we re-examine the issue with a regression analysis that allows for differential union effects on price-cost margins across three levels of concentration. Large and small firm as well as industry average price-cost margins are analyzed. The results reaffirm those of Hirsch and Connolly (1987), who conclude that the effect of unions on profits is independent of market structure, and thus market power is not an important source of union rents. We find that unionization: (1) reduces industry profits in all three concentration groups with statistically insignificant differential effects, and (2) has a greater negative effect on the profits of large firms than it does on the profits of small firms, regardless of the concentration category. We benefited from the comments of an anonymous referee. Any remaining errors are our own.     

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.     

The Impact of Job Displacement on Employer Based Health Insurance Coverage

We analyze the effect of job displacement on the probability that employer based health insurance is made available to workers. Using fixed and random effects logit models, we do find that displacement is associated with a lower probability of having access to an employer based health insurance plan. Overall this penalty is quite small (between 2 and 3 percentage points), but it becomes substantial (about 16 percentage points) for displaced workers who have been with the current employer for less than 6 months. While we do not find evidence that the penalty associated with being displaced has worsened in recent years, we do find that employers respond to economic hardship by cutting back on fringe benefits.     

Outsourcing and union power

The outsourcing of union work and jobs either diffuses or diminishes union membership, depending on perspective and situation. The correlation of trends in union membership to trends in union power, while less than perfect, has until recently been relatively strong over the past sixteen years. The fact that as diverse a sample of unions as AFSCME, SEIU, and UAW have chosen to make outsourcing a prominent labor/public relations issue suggests that the correlation continues to be perceived by the union movement to be significant, notwithstanding the efforts of the “new” leadership of the AFL-CIO to break that link with respect to union political power by “taxing” member unions and their members to contribute both money and militancy to the 1996 election cycle. Although outsourcing may lead only to the diffusion of union membership either within or between unions, as opposed to the diminution of union membership, this fact has not received a great deal of attention. The net effect on total union membership of outsourcing from one union employer to another union employer is unclear, although the effect on the membership of the union at the outsourcing employer is not. The redistribution of membership within a union as a result of outsourcing is likely to have little immediate impact on union power. However, as even the best case scenario presented above suggests, it may have significant long-run deleterious effects on union bargaining power by taking labor out of a sheltered market and putting it into potentially competitive market. This is particularly likely to be the case when outsourcing (1) places the outsourced work into a different industry or wage contour and (2) creates the possibility of moving from sole-source to multiplesource supplier arrangements. The redistribution of membership between unions as a result of outsourcing is unlikely to have a major impact on union power broadly defined. It can have, however, serious deleterious effects in terms of the power of an individual union, as suggested in my “competitive case” scenario. The fact that one union’s losses due to outsourcing may be another union’s gain is of little consolation to the losing union. That act, in and of itself, may make the threat of outsourcing a potential union “Achilles heel” at the bargaining table by placing it into competition with some other, perhaps unknown, union as well as possibly nonunion competition. The most obvious threat to union power comes from outsourcing that diminishes union membership overall by transferring jobs from union to nonunion employers. The willingness and ability of employers to move work/jobs entirely out of the orbit of union control constitutes, in terms of power and particularly union bargaining power, a revisitation of the phenomenon of the “runaway shop.” It may also be viewed as a proactive form of hiring permanent replacements for (potentially) striking workers. The union options in dealing with such a challenge are to endeavor to preclude outsourcing through legislation or collective bargaining or to chase the work by organizing the unorganized, hopefully with the help of the unionized outsourcing employer. Neither option may be easy, but as the 1996 auto industry negotiations suggest, the former may be less difficult than the latter. The possibility that outsourcing from union to nonunion employer may provide unions with the power to organize from the top (outsourcer) down (outsourcee) cannot be entirely ignored as the issue of supplier “neutrality” reportedly was raised in the 1996 auto negotiations. The adverse effects of outsourcing on union political and financial power, by virtue of its impact on the level or distribution of union membership, can and may well be offset by an increase in union activism—as measured by dues levels, merger activity, organizing commitment, and political action. The adverse effects of outsourcing on union bargaining power are more problematical from the union standpoint. The effect of outsourcing, whatever its rationale or scenario, appears to be to put union labor back into competition. Thus, outsourcing constitutes yet another challenge to the labor movement in its ongoing and seemingly increasingly unsuccessful battle to take and keep U.S. union labor out of competition by proving itself able and willing to organize to the extent of the market and standardizing wages in that market.     

Union membership and perceived powerlessness in southern US textiles*

Using Marxist, mass society, organizational, and social movements literatures, we distinguish alternative accounts of the relationship between union membership and perceived powerlessness. Then, we illustrate the distinctions with survey data on southern US textile workers. Logistic and ordinary least squares regression analyses suggest two interpretations for this group of workers: union membership influences perceived powerlessness by providing members a responsive organization that contrasts with their lack of control in the workplace; and perceived powerlessness, when combined with endorsement of collective strategies for change, encourages union membership. In the southern textile case, we find that race is associated with specific ideological leanings regarding collective strategies. The location of our sample, its particular position in the political economy of the US, and the relative immaturity of its union allow for instructive comparisons with other sociological treatments of work attitudes and collective action.     

Health Insurance and Worker Retention in the Construction Industry

Using samples of blue collar construction workers from the 1996 and 2001 SIPP, a shared frailty survival model shows that controlling for wages, occupational and demographic factors, both portable union and nonportable nonunion employer-provided health insurance increase the probability of worker retention within the construction industry. Portable union health insurance increases the probability of worker-industry retention by 30 to 41% compared to 13 to 18% for nonunion employer-provided insurance. Our research suggests that by encouraging industry retention, health insurance preserves and encourages the accumulation of human capital in a turbulent industry with high firm-and-industry-labor turnover and also may reduce worker disabilities by immediately treating medical problems. Furthermore, in the union sector of construction where health insurance is portable across signatory contractors, the problem of job-lock inefficiencies is reduced.     

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.     

Economic change and health benefits: structural trends in employer-based health insurance

Drawing on structural theories of economic outcomes, we investigated how economic change affects the distribution of health benefits, the main source of health insurance for American workers. Through an aggregate level analysis, we show how the effects of industry level characteristics on the level of health benefits change between 1988 and 1997. Due to the increased reliance on women, nonwhite workers, and part-time labor, we expect declines in the effect sizes of gender and race composition and proportion full-time. In contrast, we predict increases in the effects of proportion small firm employment, proportion union, and industry sector due to rising health care costs, the competitive economic environment, and greater union effectiveness. We analyze data from the March Current Population Surveys for 1987 to 1997 using generalized least-squares regression. The positive effect of proportion white increases over time, while the positive effect of level of full-time work declines. The negative effects of small firm employment and being a retail or nonprofessional service industry increase in magnitude. Both union activity and gender composition have stable effects over the period. The results challenge views of a declining significance of race and gender in the labor market.     

Union density effects in the supermarket industry

Unions provide higher than competitive wages for members, but their effect on non-union wages is not clear. We investigate the effect of union density on supermarket wages from 1986 to 1993, a period of declining real wages and declining union membership. Full-information maximum likelihood techniques are used to estimate log wage equations for both the union and nonunion sectors. Decomposition techniques then separate the union wage premium into the relative effects of densities and union membership. We find a significant, positive effect of union density for both union and nonunion employees. This effect explains approximately one-third of the union-nonunion wage differential. This research was conducted while Johansson was a graduate research assistant at the University of Minnesota.     

Syndicalisme et nanotechnologies. De l’espace des relations professionnelles à l’espace public des risques

The positions taken on nanotechnologies by trade union organisations, whether European or French, reveal a shift in union action. Traditionally, the trade union approach to occupational risk has been embedded in the field of professional relations, where “technical progress” is accompanied by demands formulated in terms of risk prevention. With nanotechnologies, the union response is framed in precautionary terms, with an emphasis on protection of the environment and human health before innovations are introduced. From this perspective, the study will show how the trade union movement has tackled the issue of nanotechnologies, moving from an initially work-related approach to one that places the accent on public concerns that go beyond traditional union preoccupations.     

A model of monopoly and “efficient” unions with endogenous union coverage: Positive and normative implications

We present a model of a rent-maximizing union that organizes to increase its coverage of an industry and analyze monopoly and “efficient” unions in this setting. Our model is unique in that we allow for a competitive industry with free entry and find union and nonunion firms coexisting with product market equilibrium. This is achieved by incorporating the insight that firms are heterogeneous in productive characteristics. An important implication of our model is that an “efficient” union that covers a nontrivial share of the market is not efficient and may in fact be less efficient than a monopoly union.