The Economic Effects of Labor Unions Revisited

Journal of Labor Research (Impact Factor: 0.2). 02/2002; 23(1):105-130. DOI: 10.1007/s12122-002-1021-7
Source: RePEc


Using a variety of statistical techniques, we conclude that labor unions have reduced U.S. output by significant amounts -- trillions of dollars over time. Additionally, the employment-population ratio and the unemployment rate have been adversely affected by the presence of unions. From the very beginning, unionization materially lowered employment in the auto and steel industries, and union militancy in coal mining has contributed importantly to largely eliminating employment in this once large industry. While some individual workers have profited from unions, the aggregate economic impact is strongly negative.

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    • "In most cases researchers analyzing the relevant determinants in the context of the research problem distinguish two common groups of determinants that affect the differentiation of remuneration: external and internal determinants. The first group of determinants includes the conditions of labor market (Applbaum, 1991), the level of wages in the country, in the certain kind of economic activity or in the same kind of companies ( , living standard, the policy of government (Daily et al. 1998), the social-political situation (Applbaum, 1991), kind of economic activity (Applbaum, 1991; Jing et al., 2010), ownership (Kioulafas et al., 1991; David et al., 1998), trade unions (Vedder & Gallaway, 2002). The second group of determinants comprises the specific value of the certain work, the relative value of the employee (Appelbaum & Mackenzie, 1996), company size (Newman & Bannister, 1998) and the employer's ability to pay a certain amount of remuneration (Newman & Bannister, 1998). "
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    ABSTRACT: The paper is built on the analysis and synthesis of scientific literature with the aim to review the main concept that defines the compensation of the executives, highlighting key determinants which affect the level of executive compensation and its’ structure. Following scientific publications that are based on the problematic of remuneration differentiation and specification of chief executive officers (CEO) as separate employee group the new systemized model of CEO remuneration determinants were provided.
    Full-text · Article · Dec 2015 · Procedia - Social and Behavioral Sciences
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    • "They do this by using their monopoly position to drive up wages and to introduce restrictive work practices that inhibit management's ability to introduce productive work practices such as HPWP. This is supported by research evidence on the negative impact that unions have on productivity and return to capital markets at the organization level and unemployment and output at the national level (Denny, 1997; Miller & Mulvey,1993; Pantuosco, Parker, & Stone, 2001; Vedder & Gallaway, 2002 cited in Guest, 1989). There is also a substantial body of research finding that unions can have a positive impact on the competitiveness. "
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    ABSTRACT: This paper examines the literature and research on unions relevant to the effective adoption of High Performance Work Practices. It demonstrates that unions that have a cooperative relationship with management can play an important role in overcoming barriers to the effective adoption of practices that have been linked to organizational competitiveness through the development and application of human capital. In particular, unions have the unique advantage of delivering independent voice that cannot be substituted by management. Not only can unions make a contribution to organization competitiveness but they can also ensure that employees benefit from High Performance Work Practice adoption and in doing so secure their own relevance. The contribution that unions can make is inhibited by management and union's reluctance to engage in an integrative relationship and an institutional context that does not value unions. Organizations that want to capture the value that unions can add must move away from a pluralist model of autocratic management, hostile unions and adversarial industrial relations, beyond a unitarist model that sees no role for unions, to a cooperative partnership with unions that shares the gains of implementing High Performance Work Practices.
    Full-text · Article · Mar 2009 · Human Resource Management Review
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    • "Second, a perusal of the scant literature reveals that some Austrians (e.g. Ryoo & Rosen 2004; and Vedder & Galaway 2002a) are almost indistinguishable from mainstream labour economists; others (e.g. Yeager 1997) can, with a little finessing, be located in the socioeconomic camp; and others (e.g. "
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    ABSTRACT: Theory and policy relating to labor markets is dominated by the mainstream labor market model, although a less well-known, socioeconomic version can also be identified. The mainstream model is methodologically flawed and forced, thereby, to relegate any (serious) investigation of labor market institutions and/or social structures to the margins of its analysis. The socioeconomic account is not so much methodologically flawed, as methodologically ambivalent. While this ambivalence does not actually prevent the investigation of institutions and/or social structures, it does promote ambiguity whenever we inquire into the precise nature of the interaction between them and labor markets. Insights from Austrian economics, when used in collaboration with critical realist methodology, can play a part in augmenting the socioeconomic account, generating a totally new approach to the analysis of labor markets.
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