IDEAS home Printed from https://ideas.repec.org/a/sae/eeupol/v21y2020i1p3-23.html
   My bibliography  Save this article

Labour immigration and union strength

Author

Listed:
  • Henning Finseraas

    (Institute for Social Research, Oslo, Norway)

  • Marianne Røed

    (Institute for Social Research, Oslo, Norway)

  • PÃ¥l Schøne

Abstract

Is labour mobility in the European Union a threat to the strength of unions? We argue that the combination of cheap labour, workforce heterogeneity and low unionisation among labour immigrants is a potential challenge for unions. The challenge will be severe if immigration affects natives’ unionisation. We use Norwegian administrative data in a natural experiment framework to examine this claim. The 2004 European Union expansion led to a rapid increase in labour migration to the building and construction industry, but licensing demands protected some workers from the labour supply shock. We show negative labour market effects for workers exposed to labour immigration, but no effect on union membership. Our results question theories of unionisation and are relevant for research on immigration, political behaviour and collective action.

Suggested Citation

  • Henning Finseraas & Marianne Røed & PÃ¥l Schøne, 2020. "Labour immigration and union strength," European Union Politics, , vol. 21(1), pages 3-23, March.
    • Handle: RePEc:sae:eeupol:v:21:y:2020:i:1:p:3-23
    DOI: 10.1177/1465116519881194
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/1465116519881194
    Download Restriction: no
    File URL: https://libkey.io/10.1177/1465116519881194?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. José-Ignacio Antón & René Böheim & Rudolf Winter-Ebmer, 2016. "The effects of international migration on native workers’ unionization in Austria," CDL Aging, Health, Labor working papers 2016-07, The Christian Doppler (CD) Laboratory Aging, Health, and the Labor Market, Johannes Kepler University Linz, Austria.
    2. Alberto Alesina & Eliana La Ferrara, 2000. "Participation in Heterogeneous Communities," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(3), pages 847-904.
    3. Hainmueller, Jens, 2012. "Entropy Balancing for Causal Effects: A Multivariate Reweighting Method to Produce Balanced Samples in Observational Studies," Political Analysis, Cambridge University Press, vol. 20(1), pages 25-46, January.
    4. Christian Dustmann & Uta Schönberg & Jan Stuhler, 2017. "Labor Supply Shocks, Native Wages, and the Adjustment of Local Employment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 132(1), pages 435-483.
    5. John-Paul Ferguson, 2016. "Racial Diversity and Union Organizing in the United States, 1999–2008," ILR Review, Cornell University, ILR School, vol. 69(1), pages 53-83, January.
    6. Mahoney, James & Goertz, Gary, 2004. "The Possibility Principle: Choosing Negative Cases in Comparative Research," American Political Science Review, Cambridge University Press, vol. 98(4), pages 653-669, November.
    7. Garrett, Geoffrey, 1998. "Global Markets and National Politics: Collision Course or Virtuous Circle?," International Organization, Cambridge University Press, vol. 52(4), pages 787-824, October.
    8. Colantone, Italo & Stanig, Piero, 2018. "Global Competition and Brexit," American Political Science Review, Cambridge University Press, vol. 112(2), pages 201-218, May.
    9. Verdier, Thierry & Acemoglu, Daron & Robinson, James A., 2012. "Can't We All Be More Like Scandinavians? Asymmetric Growth and Institutions in an Interdependent World," CEPR Discussion Papers 9113, C.E.P.R. Discussion Papers.
    10. Alesina, Alberto & La Ferrara, Eliana, 2002. "Who trusts others?," Journal of Public Economics, Elsevier, vol. 85(2), pages 207-234, August.
    11. Alison L. Booth, 1985. "The Free Rider Problem and a Social Custom Model of Trade Union Membership," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 100(1), pages 253-261.
    12. Bratsberg, Bernt & Raaum, Oddbjørn & Røed, Knut, 2017. "Immigrant Labor Market Integration across Admission Classes," IZA Discussion Papers 10513, Institute of Labor Economics (IZA).
    13. Blanchflower, D. & Crouchley, R. & Estrin, S. & Oswald, A., 1990. "Unemployment And The Demand For Unions," Papers 372, London School of Economics - Centre for Labour Economics.
    14. Naylor, Robin & Cripps, Martin, 1993. "An economic theory of the open shop trade union," European Economic Review, Elsevier, vol. 37(8), pages 1599-1620, December.
    15. Timothy J. Bartik, 1991. "Who Benefits from State and Local Economic Development Policies?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wbsle, November.
    16. Jelle Visser, 2002. "Why Fewer Workers Join Unions in Europe: A Social Custom Explanation of Membership Trends," British Journal of Industrial Relations, London School of Economics, vol. 40(3), pages 403-430, September.
    17. Wallerstein, Michael, 1989. "Union Organization in Advanced Industrial Democracies," American Political Science Review, Cambridge University Press, vol. 83(2), pages 481-501, June.
    18. Bernt Bratsberg & Oddbjørn Raaum, 2012. "Immigration and Wages: Evidence from Construction," Economic Journal, Royal Economic Society, vol. 122(565), pages 1177-1205, December.
    19. Michael Stepner, 2013. "BINSCATTER: Stata module to generate binned scatterplots," Statistical Software Components S457709, Boston College Department of Economics, revised 24 Nov 2013.
    20. Orley Ashenfelter & John H. Pencavel, 1969. "American Trade Union Growth: 1900–1960," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 83(3), pages 434-448.
    21. Alberto Alesina & Edward Glaeser & Bruce Sacerdote, 2001. "Why Doesn't the United States Have a European-Style Welfare State?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 32(2), pages 187-278.
    22. George J. Borjas, 2015. "Immigration and Globalization: A Review Essay," Journal of Economic Literature, American Economic Association, vol. 53(4), pages 961-974, December.
    23. Bernt Bratsberg & Oddbjørn Raaum & Marianne Røed & Pål Schøne, 2014. "Immigration Wage Effects by Origin," Scandinavian Journal of Economics, Wiley Blackwell, vol. 116(2), pages 356-393, April.
    24. Dani Rodrik, 1998. "Has Globalization Gone Too Far?," Challenge, Taylor & Francis Journals, vol. 41(2), pages 81-94, March.
    25. George J. Borjas, 2021. "The Labor Demand Curve Is Downward Sloping: Reexamining The Impact Of Immigration On The Labor Market," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 9, pages 235-274, World Scientific Publishing Co. Pte. Ltd..
    26. James Alt & Torben Iversen, 2017. "Inequality, Labor Market Segmentation, and Preferences for Redistribution," American Journal of Political Science, John Wiley & Sons, vol. 61(1), pages 21-36, January.
    27. George A. Akerlof, 1980. "A Theory of Social Custom, of which Unemployment may be One Consequence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 94(4), pages 749-775.
    28. Holger Stichnoth & Karine Van der Straeten, 2013. "Ethnic Diversity, Public Spending, And Individual Support For The Welfare State: A Review Of The Empirical Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 27(2), pages 364-389, April.
    29. Finseraas, Henning & Roed, Marianne & Schone, Pal, 2017. "Labor Market Competition with Immigrants and Political Polarization," Quarterly Journal of Political Science, now publishers, vol. 12(3), pages 347-373, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. José-Ignacio Antón & René Böheim & Rudolf Winter-Ebmer, 2022. "The effect of migration on unionization in Austria," Empirical Economics, Springer, vol. 63(5), pages 2693-2720, November.
    2. Nikolas Dawson & Mary-Anne Williams & Marian-Andrei Rizoiu, 2021. "Skill-driven recommendations for job transition pathways," PLOS ONE, Public Library of Science, vol. 16(8), pages 1-20, August.
    3. Jane Parker & Janet Sayers & Amanda Young‐Hauser & Shirley Barnett & Patricia Loga & Selu Paea, 2022. "Gender and ethnic equity in Aotearoa New Zealand's public service before and since Covid‐19: Toward intersectional inclusion?," Gender, Work and Organization, Wiley Blackwell, vol. 29(1), pages 110-130, January.
    4. Ademmer, Martin & Beckmann, Joscha & Bode, Eckhardt & Boysen-Hogrefe, Jens & Funke, Manuel & Hauber, Philipp & Heidland, Tobias & Hinz, Julian & Jannsen, Nils & Kooths, Stefan & Söder, Mareike & Stame, 2021. "Big Data in der makroökonomischen Analyse," Kieler Beiträge zur Wirtschaftspolitik 32, Kiel Institute for the World Economy (IfW Kiel).
    5. Marta Marson & Matteo Migheli & Donatella Saccone, 2021. "New evidence on the link between ethnic fractionalization and economic freedom," Economics of Governance, Springer, vol. 22(3), pages 257-292, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Finseraas, Henning & Roed, Marianne & Schone, Pal, 2018. "Labour Immigration and Union Strength," IZA Discussion Papers 11723, Institute of Labor Economics (IZA).
    2. Schnabel, Claus, 2002. "Determinants of trade union membership," Discussion Papers 15, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    3. Maria F. Hoen & Simen Markussen & Knut Røed, 2022. "Immigration and economic mobility," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(4), pages 1589-1630, October.
    4. Schnabel, Claus & Wagner, Joachim, 2003. "Trade Union Membership in Eastern and Western Germany: Convergence or Divergence?," IZA Discussion Papers 707, Institute of Labor Economics (IZA).
    5. Schnabel, Claus & Wagner, Joachim, 2003. "Determinants of Trade Union Membership in Western Germany: Evidence from Micro Data, 1980-2000," IZA Discussion Papers 708, Institute of Labor Economics (IZA).
    6. Sharpe, Jamie & Bollinger, Christopher R., 2020. "Who competes with whom? Using occupation characteristics to estimate the impact of immigration on native wages," Labour Economics, Elsevier, vol. 66(C).
    7. Fenet Jima Bedaso & Uwe Jirjahn, 2024. "Immigrants and trade union membership: Does integration into society and workplace play a moderating role?," British Journal of Industrial Relations, London School of Economics, vol. 62(2), pages 262-292, June.
    8. Daniele Checchi & Claudio Lucifora, 2002. "Unions and labour market institutions in Europe [‘Deunionisation, technical change and inequality’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 17(35), pages 361-408.
    9. Borjas, George J. & Edo, Anthony, 2021. "Gender, Selection into Employment, and the Wage Impact of Immigration," IZA Discussion Papers 14261, Institute of Labor Economics (IZA).
    10. Daniele Checchi, 2000. "Time series evidence on union densities in European countries," Departmental Working Papers 2000-10, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    11. Uwe Jirjahn, 2021. "Foreign ownership and intra-firm union density in Germany," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 42(4), pages 1052-1079, November.
    12. Masanori Kuroki, 2018. "Racial diversity, immigrants and the well-being of residents: evidence from US counties," Journal of Population Economics, Springer;European Society for Population Economics, vol. 31(1), pages 107-133, January.
    13. Dimitrova-Grajzl Valentina & Grajzl Peter & Guse A. Joseph & Smith J. Taylor, 2016. "Racial Group Affinity and Religious Giving: Evidence from Congregation-Level Panel Data," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 16(2), pages 689-725, April.
    14. Goerke Laszlo & Pannenberg Markus, 2004. "Norm-Based Trade Union Membership: Evidence for Germany," German Economic Review, De Gruyter, vol. 5(4), pages 481-504, December.
    15. Amior, Michael, 2020. "Immigration, local crowd-out and undercoverage bias," LSE Research Online Documents on Economics 108490, London School of Economics and Political Science, LSE Library.
    16. Costanza Naguib, 2023. "Is the Impact of Opening the Borders Heterogeneous?," Diskussionsschriften dp2312, Universitaet Bern, Departement Volkswirtschaft.
    17. Schnabel, Claus & Wagner, Joachim, 2005. "Determinants of Union Membership in 18 EU Countries: Evidence from Micro Data, 2002/03," IZA Discussion Papers 1464, Institute of Labor Economics (IZA).
    18. repec:aia:aiaswp:wp4 is not listed on IDEAS
    19. Schaeffer, Merlin, 2013. "Ethnic diversity, public goods provision and social cohesion: Lessons from an inconclusive literature," Discussion Papers, Research Unit: Migration, Integration, Transnationalization SP VI 2013-103, WZB Berlin Social Science Center.
    20. Naguib, Costanza, 2019. "Estimating the Heterogeneous Impact of the Free Movement of Persons on Relative Wage Mobility," Economics Working Paper Series 1903, University of St. Gallen, School of Economics and Political Science.
    21. Susanne Prantl & Alexandra Spitz-Oener, 2020. "The Impact of Immigration on Competing Natives' Wages: Evidence from German Reunification," The Review of Economics and Statistics, MIT Press, vol. 102(1), pages 79-97, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:eeupol:v:21:y:2020:i:1:p:3-23. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.