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The Career Effects of Union Membership

Author

Listed:
  • Dodini, Samuel

    (Federal Reserve Bank of Dallas)

  • Salvanes, Kjell G.

    (Norwegian School of Economics)

  • Willén, Alexander

    (Norwegian School of Economics)

  • Zhu, Li

    (Norwegian School of Economics)

Abstract
We combine exogenous variation in union membership with detailed administrative data and a novel field survey to estimate the career effects of labor union membership. In the survey, we show how workers perceive the role of unions in setting wages and determining work amenities. In the administrative data, we causally examine through which channels unions influence worker outcomes, whether unions influence workers differently across their careers, and what the overall long-run effects of individual union membership are. Our results highlight that the career effect of union membership differs greatly depending on the age at which workers enroll. In addition, we show that focusing on a restricted set of outcomes, such as wages and employment, generates a fractionalized understanding of the multidimensional career effect that union membership has on workers.

Suggested Citation

  • Dodini, Samuel & Salvanes, Kjell G. & Willén, Alexander & Zhu, Li, 2023. "The Career Effects of Union Membership," IZA Discussion Papers 16185, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16185
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    References listed on IDEAS

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    1. Bryson, Alex, 2002. "The union membership wage premium: an analysis using propensity score matching," LSE Research Online Documents on Economics 4953, London School of Economics and Political Science, LSE Library.
    2. Henry S Farber & Daniel Herbst & Ilyana Kuziemko & Suresh Naidu, 2021. "Unions and Inequality over the Twentieth Century: New Evidence from Survey Data," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 136(3), pages 1325-1385.
    3. Kjell G. Salvanes & Barton Willage & Alexander Willén, 2024. "The Effect of Labor Market Shocks across the Life Cycle," Journal of Labor Economics, University of Chicago Press, vol. 42(1), pages 121-160.
    4. Brigham R. Frandsen, 2021. "The Surprising Impacts of Unionization: Evidence from Matched Employer-Employee Data," Journal of Labor Economics, University of Chicago Press, vol. 39(4), pages 861-894.
    5. Francine D. Blau & Lawrence M. Kahn, 2017. "The Gender Wage Gap: Extent, Trends, and Explanations," Journal of Economic Literature, American Economic Association, vol. 55(3), pages 789-865, September.
    6. Julian Vedeler Johnsen & Kjell Vaage & Alexander Willén, 2022. "Interactions in Public Policies: Spousal Responses and Program Spillovers of Welfare Reforms," The Economic Journal, Royal Economic Society, vol. 132(642), pages 834-864.
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    9. Salvanes, Kjell G & Dodini, Samuel & Willén, Alexander, 2021. "The Dynamics of Power in Labor Markets: Monopolistic Unions versus Monopsonistic Employers," CEPR Discussion Papers 16834, C.E.P.R. Discussion Papers.
    10. Aaron J. Sojourner & Brigham R. Frandsen & Robert J. Town & David C. Grabowski & Min M. Chen, 2015. "Impacts of Unionization on Quality and Productivity," ILR Review, Cornell University, ILR School, vol. 68(4), pages 771-806, August.
    11. Hagedorn, J. & Paras, C.A. & Greenwich, H. & Hagopian, A., 2016. "The role of labor unions in creating working conditions that promote public health," American Journal of Public Health, American Public Health Association, vol. 106(6), pages 989-995.
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    13. Tae-Youn Park & Eun-Suk Lee & John W. Budd, 2019. "What Do Unions Do for Mothers? Paid Maternity Leave Use and the Multifaceted Roles of Labor Unions," ILR Review, Cornell University, ILR School, vol. 72(3), pages 662-692, May.
    14. Napari, Sami, 2009. "Gender differences in early-career wage growth," Labour Economics, Elsevier, vol. 16(2), pages 140-148, April.
    15. Boeri, Tito & Brugiavini, Agar & Calmfors, Lars (ed.), 2001. "The Role of Unions in the Twenty-first Century: A Report for the Fondazione Rodolfo Debenedetti," OUP Catalogue, Oxford University Press, number 9780199246588.
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    Cited by:

    1. Silliman, Mikko & Willén, Alexander, 2024. "Worker Power, Immigrant Sorting, and Firm Dynamics," IZA Discussion Papers 17208, Institute of Labor Economics (IZA).
    2. Dodini, Samuel & Willén, Alexander & Zhu, Julia Li, 2023. "The Role of Labor Unions in Immigrant Integration," Discussion Paper Series in Economics 24/2023, Norwegian School of Economics, Department of Economics.

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    More about this item

    Keywords

    unions; wage premiums; job protection; work environment;
    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
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions

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