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The Union Threat Effect in Construction: An Illustration with Data from Plumber and Pipefitter Union Locals

Author

Listed:
  • Kevin Duncan

    (Hasan School of Business, Colorado State University-Pueblo)

  • Peter Philips

    (Department of Economics, University of Utah)

  • Mark Prus

    (Department of Economics, State University of New York, Cortland)

Abstract

Data from plumbing and pipefitting union locals are used to measure the effect of union organizing strength on the wages of high-skilled and semi-skilled nonunion workers. We find that increases in union strength are associated with higher wages for nonunion journeymen. However, the wages of lower skilled, nonunion journeymen helpers are not related to our measures of union recruitment power. These results are consistent with the organizing tactic of labor stripping where skilled nonunion workers are convinced to leave their nonunion employers and join the union. Greater union strength is not associated with higher wages for union journeymen. Rather, these workers derive increased employment opportunities where the union is strong. Our results suggest that the union threat effect is different in the construction industry where unions develop unique strategies due to the nature of the industry.

Suggested Citation

  • Kevin Duncan & Peter Philips & Mark Prus, 2008. "The Union Threat Effect in Construction: An Illustration with Data from Plumber and Pipefitter Union Locals," Working Papers 0804, University of Otago, Department of Economics, revised May 2008.
    • Handle: RePEc:otg:wpaper:0804
    as

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    References listed on IDEAS

    as
    1. David Neumark & Michael L. Wachter, 1995. "Union Effects on Nonunion Wages: Evidence from Panel Data on Industries and Cities," ILR Review, Cornell University, ILR School, vol. 49(1), pages 20-38, October.
    2. S. Rosen, 1969. "Trade Union Power, Threat Effects and the Extent of Organization," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 36(2), pages 185-196.
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    More about this item

    Keywords

    union threat effect; union-nonunion wage gap; construction;
    All these keywords.

    JEL classification:

    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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