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Unions and the persistence of shocks to employment

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  • Yamane, Linus

Abstract

Using both a parametric and a non-parametric measure of persistence, this paper examines the persistence of shocks to U.S. employment at the state-sector level. Shocks to employment are found to be more persistent in the less unionized labor markets. Shocks to employment are also observed to have become more and more persistent during the post-war period as unionization rates have fallen. The actual direction of causality was tested by an examination of employment in states with right-to-work laws. The paper rejects an implication of the insider-outsider theory.

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  • Yamane, Linus, 1993. "Unions and the persistence of shocks to employment," Journal of Macroeconomics, Elsevier, vol. 15(4), pages 805-827.
    • Handle: RePEc:eee:jmacro:v:15:y:1993:i:4:p:805-827
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    Cited by:

    1. Thomas Y. Mathä & Stephen Millard & Tairi Rõõm & Ladislav Wintr & Robert Wyszyński, 2021. "Shocks and labour cost adjustment: evidence from a survey of European firms," Oxford Economic Papers, Oxford University Press, vol. 73(3), pages 1008-1033.
    2. Yamane, Linus, 1998. "The insider-outsider model and Japanese labor unions," Japan and the World Economy, Elsevier, vol. 10(2), pages 157-171, April.

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