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The Decline of Unionization in the United States: What can Be Learned from Recent Experience?

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  • Henry S. Farber

Abstract

The dramatic decline in unionization over the last decade is investigated in the context of a supply/demand model of union status determination. Data from surveys conducted in 1977 and 1984 are used to decompose the decline into components due to a drop in the demand for union representation and a drop in the supply of union jobs relative to demand. It is found that there has been a substantial drop in demand that can be accounted for by an increase in the job satisfaction of nonunion workers and a decrease in nonunion workers' beliefs that unions improve wages and working conditions. It is also found that there has been a substantial drop in the supply of union jobs relative to demand that is attributed to an increase in employer resistance to unionization. Increased foreign and increased nonunion domestic competition (particularly in deregulated industries) are cited as the likely key underlying causes of these changes.

Suggested Citation

  • Henry S. Farber, 1987. "The Decline of Unionization in the United States: What can Be Learned from Recent Experience?," NBER Working Papers 2267, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:2267
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    1. Katharine G. Abraham & James L. Medoff, 1985. "Length of Service and Promotions in Union and Nonunion Work Groups," ILR Review, Cornell University, ILR School, vol. 38(3), pages 408-420, April.
    2. John M. Abowd & Henry S. Farber, 1990. "Product Market Competition, Union Organizing Activity, and Employer Resistance," Working Papers 1990-2, Princeton University. Economics Department..
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    5. John M. Abowd & Thomas Lemieux, 1991. "The Effects of International Competition on Collective Bargaining Outcomes: A Comparison of the United States and Canada," NBER Chapters, in: Immigration, Trade, and the Labor Market, pages 343-367, National Bureau of Economic Research, Inc.
    6. Katharine G. Abraham & James L. Medoff, 1984. "Length of Service and Layoffs in Union and Nonunion Work Groups," ILR Review, Cornell University, ILR School, vol. 38(1), pages 87-97, October.
    7. John M. Abowd & Henry S. Farber, 1982. "Job Queues and the Union Status of Workers," ILR Review, Cornell University, ILR School, vol. 35(3), pages 354-367, April.
    8. Rose, Nancy L, 1987. "Labor Rent Sharing and Regulation: Evidence from the Trucking Industry," Journal of Political Economy, University of Chicago Press, vol. 95(6), pages 1146-1178, December.
    9. Poirier, Dale J., 1980. "Partial observability in bivariate probit models," Journal of Econometrics, Elsevier, vol. 12(2), pages 209-217, February.
    10. Lee, Lung-Fei, 1978. "Unionism and Wage Rates: A Simultaneous Equations Model with Qualitative and Limited Dependent Variables," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(2), pages 415-433, June.
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    1. Henry S. Farber, 1989. "Trends in Worker Demand for Union Representation," Working Papers 1989-1, Princeton University. Economics Department..

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