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Round Up The Usual Suspects: The Decline of Unions in The Private Sector, 1973-1998

Author

Listed:
  • Henry S. Farber

    (Princeton University)

  • Bruce Western

    (Princeton University)

Abstract

After documenting the long decline in private sector unionism over the last 50 years, we examine data on NLRB representation elections to determine if changes in the administration of the NLRA during the 1980s reduced the level of organizing activity and success. While organizing activity sharply declined in 1981 (just before President Reagan's showdown with the air traffic controllers' union, PATCO), we find little evidence that the changes in the administration of the NLRA later in the decade adversely affected the level of union organizing activity. We then present an accounting framework that decomposes the sharp decline in the private-sector union membership rate into components due to 1) differential growth rates in employment between the union and nonunion sectors and 2) changes in the union new organization rate (through NLRB-supervised representation elections). We find that most of the decline in the union membership rate is due to differential employment growth rates and that changes in union organizing activity had relatively little effect. Given that the differential employment growth rates are due largely to broader market and regulatory forces, we conclude that the prospects are dim for a reversal of the downward spiral of labor unions based on increased organizing activity.

Suggested Citation

  • Henry S. Farber & Bruce Western, 2000. "Round Up The Usual Suspects: The Decline of Unions in The Private Sector, 1973-1998," Working Papers 816, Princeton University, Department of Economics, Industrial Relations Section..
  • Handle: RePEc:pri:indrel:437
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    References listed on IDEAS

    as
    1. Henry S. Farber, 1999. "Union Success in Representation Elections: Why Does Unit Size Matter?," Working Papers 420, Princeton University, Department of Economics, Industrial Relations Section..
    2. Gregory M. Saltzman, 1988. "Public Sector Bargaining Laws Really Matter: Evidence from Ohio and Illinois," NBER Chapters, in: When Public Sector Workers Unionize, pages 41-80, National Bureau of Economic Research, Inc.
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    12. Henry S. Farber, 1999. "Union Success in Representation Elections: Why Does Unit Size Matter?," NBER Working Papers 7229, National Bureau of Economic Research, Inc.
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    16. Henry S. Farber, 1999. "Union Success in Representation Elections: Why Does Unit Size Matter?," Working Papers 799, Princeton University, Department of Economics, Industrial Relations Section..
    17. Rose, Nancy L, 1987. "Labor Rent Sharing and Regulation: Evidence from the Trucking Industry," Journal of Political Economy, University of Chicago Press, vol. 95(6), pages 1146-1178, December.
    18. repec:fth:prinin:420 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. David Card & Richard B. Freeman, 2004. "What Have Two Decades of British Economic Reform Delivered?," NBER Chapters, in: Seeking a Premier Economy: The Economic Effects of British Economic Reforms, 1980–2000, pages 9-62, National Bureau of Economic Research, Inc.
    2. Marco Francesconi & Carlos García Serrano, 2004. "Unions, Temporary Employment and Hours of Work: A Tale of Two Countries," Revista de Economía Laboral - Spanish Journal of Labour Economics, Asociación Española de Economía Laboral - AEET, vol. 1, pages 38-75.
    3. Miguel Morin, 2015. "The Labor Market Consequences of Electricity Adoption: Concrete Evidence from the Great Depression," Cambridge Working Papers in Economics 1554, Faculty of Economics, University of Cambridge.
    4. Behroz Baraghoshi & Cihan Bilginsoy, 2013. "Interstate Variations in Private Sector Union Density in the U.S," Journal of Labor Research, Springer, vol. 34(2), pages 180-202, June.
    5. Baris Kaymak & Omer Acikgoz, 2011. "The Rising Skill Premium and Deunionization in the United States," 2011 Meeting Papers 1433, Society for Economic Dynamics.
    6. Daron Acemoglu, 2002. "Technical Change, Inequality, and the Labor Market," Journal of Economic Literature, American Economic Association, vol. 40(1), pages 7-72, March.
    7. Hornstein, Andreas & Krusell, Per & Violante, Giovanni L., 2005. "The Effects of Technical Change on Labor Market Inequalities," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 20, pages 1275-1370, Elsevier.
    8. Henrys Farber, 2001. "Union Success in Representation Elections: Why Does Unit Size Matter?," ILR Review, Cornell University, ILR School, vol. 54(2), pages 329-348, January.
    9. Jeremy Waddington, 2001. "Introduction: trade unions and labour relations in the United States," Transfer: European Review of Labour and Research, , vol. 7(3), pages 396-405, August.
    10. Susan Johnson, "undated". "'Legal' versus 'Economic' factors in the growth and decline of unions: A stock-flow analysis of Canada and the US," Canadian International Labour Network Working Papers 44, McMaster University.
    11. Janice Fine, 2007. "A Marriage Made in Heaven? Mismatches and Misunderstandings between Worker Centres and Unions," British Journal of Industrial Relations, London School of Economics, vol. 45(2), pages 335-360, June.
    12. Hornstein, Andreas & Krusell, Per & Violante, Giovanni L., 2005. "The Effects of Technical Change on Labor Market Inequalities," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 20, pages 1275-1370, Elsevier.
    13. repec:pri:cepsud:113krusell is not listed on IDEAS
    14. Acemoglu, Daron & Aghion, Philippe & Violante, Giovanni L., 2001. "Deunionization, technical change and inequality," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 55(1), pages 229-264, December.

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    More about this item

    Keywords

    union growth; union membership;

    JEL classification:

    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy

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