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The consequences of trade union power erosion

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  • John T. Addison

    (University of South Carolina, USA, University of Durham, UK, and IZA, Germany)

Abstract

The micro- and macroeconomic effects of the declining power of trade unions have been hotly debated by economists and policymakers. Nevertheless, the empirical evidence shows that the impact of the decline on economic aggregates and firm performance is not an overwhelming cause for concern. However, the association of declining union power with rising earnings inequality and a loss of direct communication between workers and firms is potentially more worrisome. This in turn raises the questions of how supportive contemporary unionism is of wage solidarity, and whether the depiction of the nonunion workplace as an authoritarian “bleak house” is more caricature than reality.

Suggested Citation

  • John T. Addison, 2014. "The consequences of trade union power erosion," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-68, May.
    • Handle: RePEc:iza:izawol:journl:y:2014:n:68
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    References listed on IDEAS

    as
    1. Jonas Pontusson, 2013. "Unionization, Inequality and Redistribution," British Journal of Industrial Relations, London School of Economics, vol. 51(4), pages 797-825, December.
    2. John T. Addison, 2009. "The Economics of Codetermination," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-10424-2, March.
    3. Sandra E. Black & Lisa M. Lynch, 2001. "How To Compete: The Impact Of Workplace Practices And Information Technology On Productivity," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 434-445, August.
    4. David Card & Thomas Lemieux & W. Craig Riddell, 2004. "Unions and Wage Inequality," Journal of Labor Research, Transaction Publishers, vol. 25(4), pages 519-562, October.
    5. John T. Addison & Claus Schnabel (ed.), 2003. "International Handbook of Trade Unions," Books, Edward Elgar Publishing, number 2705.
    6. Barry T. Hirsch, 2004. "What Do Unions Do for Economic Performance?," Journal of Labor Research, Transaction Publishers, vol. 25(3), pages 415-456, July.
    7. Addison, John T. & Belfield, Clive R., 2002. "Unions and Establishment Performance: Evidence from the British Workplace Industrial/Employee Relations Surveys," IZA Discussion Papers 455, Institute of Labor Economics (IZA).
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

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    2. Braakmann, Nils & Hirsch, Boris, 2023. "Unions as Insurance: Employer–Worker Risk Sharing and Workers' Outcomes during COVID-19," IZA Discussion Papers 15893, Institute of Labor Economics (IZA).
    3. Silvia Vannutelli & Sergio Scicchitano & Marco Biagetti, 2022. "Routine-biased technological change and wage inequality: do workers’ perceptions matter?," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 12(3), pages 409-450, September.
    4. Artz, Benjamin & Blanchflower, David G. & Bryson, Alex, 2022. "Unions increase job satisfaction in the United States," Journal of Economic Behavior & Organization, Elsevier, vol. 203(C), pages 173-188.
    5. Francesco Devicienti & Paolo Naticchioni & Andrea Ricci, 2015. "How Do Demand Volatility And Unions Affect Temporary Employment? A Firm-Level Approach," Working Papers 0415, CREI Università degli Studi Roma Tre, revised 2015.
    6. Francesco Devicienti & Paolo Naticchioni & Andrea Ricci, 2018. "Temporary Employment, Demand Volatility, and Unions: Firm-Level Evidence," ILR Review, Cornell University, ILR School, vol. 71(1), pages 174-207, January.
    7. Sue Ledwith & Janet Munakamwe, 2015. "Gender, union leadership and collective bargaining: Brazil and South Africa," The Economic and Labour Relations Review, , vol. 26(3), pages 411-429, September.
    8. Hugo Vilares & Pedro Portugal, 2013. "Labor unions, union density and the union wage premium," Economic Bulletin and Financial Stability Report Articles and Banco de Portugal Economic Studies, Banco de Portugal, Economics and Research Department.
    9. Ruben Perez-Sanz, 2024. "International monopoly union coordination under the presence of externalities and costs," International Economics and Economic Policy, Springer, vol. 21(1), pages 181-205, February.

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    More about this item

    Keywords

    union density/coverage; bargaining structure; coordination; macro/micro performance; redistribution; voice;
    All these keywords.

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
    • J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy

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