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The Effects of Import Competition on Unionization

Author

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  • John S. Ahlquist
  • Mitch Downey

Abstract

We study direct and indirect effects of Chinese import competition on union membership in the United States, 1990–2014. Import competition in manufacturing induced a modest decline in unionization within manufacturing industries. The magnitude is small because unionized manufacturers competed in higher-quality product segments. Manufacturers in right-to-work states experienced more direct competition with low-quality Chinese imports. Outside of manufacturing, however, import competition causes an important increase in union membership, as less educated women shift away from retail and toward jobs in health care and education where unions are stronger. We calculate that Chinese imports prevented 26 percent of the union density decline that would have otherwise occurred.

Suggested Citation

  • John S. Ahlquist & Mitch Downey, 2023. "The Effects of Import Competition on Unionization," American Economic Journal: Economic Policy, American Economic Association, vol. 15(4), pages 359-389, November.
    • Handle: RePEc:aea:aejpol:v:15:y:2023:i:4:p:359-89
    DOI: 10.1257/pol.20200709
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    Citations

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    Cited by:

    1. Chantal Pezold & Simon Jäger & Patrick Nüss, 2023. "Labor Market Tightness and Union Activity," NBER Working Papers 31988, National Bureau of Economic Research, Inc.
    2. Munch, Jakob R. & Olney, William W., 2024. "Offshoring and the Decline of Unions," IZA Discussion Papers 17116, Institute of Labor Economics (IZA).

    More about this item

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid

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