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Did Globalization Reduce Unionisation? Evidence from U.S. Manufacturing

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  • Elisabetta Magnani

    (The University of New South Wales)

  • David Prentice

    (Department of Economics and Finance, La Trobe University)

Abstract

How do globalization economic conditions affect labour market institutions such as unionism? We draw on recent theoretical and empirical work to yield a more comprehensive set of hypotheses related to the decline in unionisation. Furthermore, we extend recent theoretical work to highlight a direct role for competition (domestic and international) in determining unionisation. This paper uses a unique data set of U.S. three-digit manufacturing industries from 1972 to 1994 to test the hypothesis that domestic and international competition reduce unionisation. The main finding is that in spite of the importance of quasi-rents to explain unionisation, foreign and domestic competition are also significant determinants of unionisation.

Suggested Citation

  • Elisabetta Magnani & David Prentice, 2000. "Did Globalization Reduce Unionisation? Evidence from U.S. Manufacturing," Working Papers 2000.17, School of Economics, La Trobe University.
    • Handle: RePEc:ltr:wpaper:2000.17
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    Cited by:

    1. Jirjahn, Uwe, 2024. "Corporate Globalization and Worker Representation," IZA Discussion Papers 16727, Institute of Labor Economics (IZA).
    2. 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.
    3. Reshad N. Ahsan & Arghya Ghosh & Devashish Mitra, 2017. "International trade and unionization: Evidence from India," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 50(2), pages 398-425, May.
    4. Potrafke, Niklas, 2013. "Globalization and labor market institutions: International empirical evidence," Journal of Comparative Economics, Elsevier, vol. 41(3), pages 829-842.
    5. John Schmitt & Alexandra Mitukiewicz, 2012. "Politics matter: changes in unionisation rates in rich countries, 1960–2010," Industrial Relations Journal, Wiley Blackwell, vol. 43(3), pages 260-280, May.
    6. Samantha Farmakis‐Gamboni & David Prentice, 2011. "When Does Reducing Union Bargaining Power Increase Productivity? Evidence from the Workplace Relations Act," The Economic Record, The Economic Society of Australia, vol. 87(279), pages 603-616, December.
    7. Elisabetta Magnani & David Prentice, 2010. "Outsourcing And Unionization: A Tale Of Misallocated (Resistance) Resources," Economic Inquiry, Western Economic Association International, vol. 48(2), pages 460-482, April.
    8. Hamid Beladi & Chi-Chur Chao & Daniel Hollas, 2013. "Does globalization weaken labor unions in developing countries?," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 22(4), pages 562-571, June.
    9. Elisabetta Magnani & David Prentice, 2006. "Unionization and Input Flexibility in U.S. Manufacturing, 1973 – 1996," ILR Review, Cornell University, ILR School, vol. 59(3), pages 386-407, April.
    10. 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.
    11. Schnabel, Claus, 2012. "Union membership and density: Some (not so) stylized facts and challenges," Discussion Papers 81, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    12. Dumont, Michel, 2004. "The Impact of International Trade with Newly Industrialised Countries on the Wages and Employment of Low-Skilled and High-Skilled Workers in the European Union," Thesis Commons bmxag, Center for Open Science.
    13. Ceyhun Elgin, 2012. "Unionization and informal economy," Economics Bulletin, AccessEcon, vol. 32(3), pages 2615-2623.
    14. Richard Volpe, 2014. "Supercenters, Unionized Labor, and Performance in Food Retail," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 53(2), pages 325-355, April.
    15. Elisabetta Magnani & David Prentice, 2010. "Did Lower Unionization in the United States Result in More Flexible Industries?," ILR Review, Cornell University, ILR School, vol. 63(4), pages 662-680, July.
    16. Samantha Farmakis-Gamboni & David Prentice, 2007. "Does Reducing Union Bargaining Power Increase Productivity?," Working Papers 2007.04 EDIRC Provider-In, School of Economics, La Trobe University.

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