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The Minimum Wage and Union Membership among Minimum Wage Workers: Why Do Unions Advocate for Minimum Wage Increases?

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Listed:
  • Clemens, Jeffrey

    (University of California, San Diego)

  • Strain, Michael R.

    (American Enterprise Institute for Public Policy Research)

Abstract

Over the past decade, organized labor has played a significant role in advocating for minimum wage increases. In this paper, we investigate the effects of minimum wage increases on union membership among individuals in minimum wage intensive industries. Consistent with a "freeriding" hypothesis, we find that minimum wage increases predict declines in union membership among low-skilled's most direct beneficiaries. We find no evidence of a change in union membership among high-skilled workers in these industries.

Suggested Citation

  • Clemens, Jeffrey & Strain, Michael R., 2022. "The Minimum Wage and Union Membership among Minimum Wage Workers: Why Do Unions Advocate for Minimum Wage Increases?," IZA Discussion Papers 15685, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp15685
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    References listed on IDEAS

    as
    1. Jeffrey Clemens & Michael R. Strain, 2021. "The Heterogeneous Effects of Large and Small Minimum Wage Changes: Evidence over the Short and Medium Run Using a Pre-Analysis Plan," NBER Working Papers 29264, National Bureau of Economic Research, Inc.
    2. Clemens, Jeffrey & Hobbs, Duncan & Strain, Michael R., 2018. "A Database on the Passage and Enactment of Recent State Minimum Wage Increases," IZA Discussion Papers 11748, Institute of Labor Economics (IZA).
    3. Baker, Andrew C. & Larcker, David F. & Wang, Charles C.Y., 2022. "How much should we trust staggered difference-in-differences estimates?," Journal of Financial Economics, Elsevier, vol. 144(2), pages 370-395.
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    More about this item

    Keywords

    political economy; social choice; minimum wage; unionization;
    All these keywords.

    JEL classification:

    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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