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Social attitudes, labor law, and union organizing: Toward a new economics of union density

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  • Palley, Thomas I.
  • LaJeunesse, Robert M.

Abstract

Much has been written about union wage bargaining. Much less has been written about union density, which has been viewed as simply the employment outcome under the wage bargain. This paper presents a new dynamic model of union density that exhibits multiple equilibria and path-dependency. The model builds upon Freeman (1998) who identified the importance of union spending on organizing and business spending on opposing unions. It emphasizes the demand for union representation which depends on wage bargaining outcomes, the state of labor law, and socio-economic factors impacting public attitudes to unions. The model is used to provide a narrative account of the historical evolution of union density in the U.S. and to identify factors important for its future evolution.
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  • Palley, Thomas I. & LaJeunesse, Robert M., 2007. "Social attitudes, labor law, and union organizing: Toward a new economics of union density," Journal of Economic Behavior & Organization, Elsevier, vol. 62(2), pages 237-254, February.
  • Handle: RePEc:eee:jeborg:v:62:y:2007:i:2:p:237-254
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    1. David G. Blanchflower & Andrew J. Oswald, 1995. "The Wage Curve," MIT Press Books, The MIT Press, edition 1, volume 1, number 026202375x, December.
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    7. Richard B. Freeman, 1998. "Spurts in Union Growth: Defining Moments and Social Processes," NBER Chapters, in: The Defining Moment: The Great Depression and the American Economy in the Twentieth Century, pages 265-296, National Bureau of Economic Research, Inc.
    8. Gilbert L. Skillman, 1991. "Efficiency vs. Control: A Strategic Bargaining Analysis of Capitalist Production," Review of Radical Political Economics, Union for Radical Political Economics, vol. 23(1-2), pages 12-21, March.
    9. Richard B. Freeman & James L. Medoff, 1979. "The Two Faces of Unionism," NBER Working Papers 0364, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Lewkowicz Jacek & Lewczuk Anna, 2017. "An Institutional Approach to Trade Union Density. The Case of Legal Origins and Political Ideology," Central European Economic Journal, Sciendo, vol. 2(49), pages 35-49, December.

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