The inflation-unemployment trade-offs of union members

Social preference functions between inflation and unemployment are estimated for individuals classified by union status using Gallup Poll presidential popularity data. We expected union members to assign higher weights to unemployment and lower weights to inflation than those who are not union members, but we found the reverse. Union members weight unemployment relative to inflation less than nonunion members because they weight unemployment less. Given the emphasis that trade union leaders place on reducing unemployment rather than inflation, this suggests a divergence in views between union leaders and the rank and file. The authors are indebted to Jeff Moore and an anonymous referee for helpful comments on earlier versions of this paper. Any remaining errors are our own. Smyth’s research was aided by the LSU Foundation.