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What Businesses Attract Unions? Unionization over the Life Cycle of U.S. Establishments

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  • Emin Dinlersoz
  • Jeremy Greenwood
  • Henry Hyatt

Abstract

What types of businesses attract unions? The study develops a theory of union learning and organizing to provide an answer to this question. A union monitors the productivity of establishments in an industry and uses this information to decide which ones to organize. An establishment becomes unionized if the union wins a certification election, the outcome of which can be influenced by costly actions taken by the two parties. The model offers predictions on the nature of union selection, which are examined empirically. Data on union certification elections, matched with data on establishment characteristics, are used to explore where union activity is concentrated.

Suggested Citation

  • Emin Dinlersoz & Jeremy Greenwood & Henry Hyatt, 2017. "What Businesses Attract Unions? Unionization over the Life Cycle of U.S. Establishments," ILR Review, Cornell University, ILR School, vol. 70(3), pages 733-766, May.
    • Handle: RePEc:sae:ilrrev:v:70:y:2017:i:3:p:733-766
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    References listed on IDEAS

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    Cited by:

    1. Jeremy Greenwood & David Weiss, 2018. "Mining Surplus: Modeling James A. Schmitz'S Link Between Competition And Productivity," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 59(3), pages 1015-1034, August.
    2. Emin Dinlersoz & Zoltan Wolf, 2024. "Automation, labor share, and productivity: plant-level evidence from U.S. manufacturing," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 33(4), pages 604-626, May.
    3. Sezer, Ayse Hazal & Uras, Burak, 2024. "Firms and Unions," Other publications TiSEM 81a58c37-dd82-442d-aab1-b, Tilburg University, School of Economics and Management.
    4. de Pinto, Marco & Lingens, Jörg, 2019. "The impact of unionization costs when firm-selection matters," Labour Economics, Elsevier, vol. 60(C), pages 50-63.
    5. Dinlersoz, Emin & Greenwood, Jeremy, 2016. "The rise and fall of unions in the United States," Journal of Monetary Economics, Elsevier, vol. 83(C), pages 129-146.
    6. Marco de Pinto & Jochen Michaelis, 2017. "Firm Selection and the Role of Union Heterogeneity," MAGKS Papers on Economics 201743, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    7. Ioana Marinescu & Yue Qiu & Aaron Sojourner, 2021. "Wage Inequality and Labor Rights Violations," NBER Working Papers 28475, National Bureau of Economic Research, Inc.
    8. Sezer, Ayse Hazal & Uras, Burak, 2024. "Firms and Unions," Discussion Paper 2024-006, Tilburg University, Center for Economic Research.
    9. de Pinto, Marco & Michaelis, Jochen, 2019. "The labor market effects of trade union heterogeneity," Economic Modelling, Elsevier, vol. 78(C), pages 60-72.
    10. Chantal Pezold & Simon Jäger & Patrick Nüss, 2023. "Labor Market Tightness and Union Activity," NBER Working Papers 31988, National Bureau of Economic Research, Inc.
    11. Woo-sahng Kim & Bo-young Moon & Dong-goo Jung, 2024. "The Effect of COVID-19 on Public and Private Sector Earnings Management: Evidence from Korea," IJFS, MDPI, vol. 12(2), pages 1-12, June.
    12. Suresh Naidu, 2022. "Is There Any Future for a US Labor Movement?," Journal of Economic Perspectives, American Economic Association, vol. 36(4), pages 3-28, Fall.

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    More about this item

    Keywords

    unionization; union organizing; union selection; union certification election; diffusion of unionization; employer resistance to unionization; Bayesian learning;
    All these keywords.

    JEL classification:

    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory

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