The Rise and Fall of Unions in the United States
58 Pages Posted: 8 May 2012 Last revised: 29 Aug 2016
There are 3 versions of this paper
The Rise and Fall of Unions in the United States
The Rise and Fall of Unions in the U.S.
The Rise and Fall of Unions in the U.S
Date Written: August 6, 2016
Abstract
Union membership in the United States displayed a ∩-shaped pattern over the 20th century, while income inequality sketched a ∪. A model of unions is developed to analyze these facts. There is a distribution of productivity across firms in the economy. Firms hire capital, plus skilled and unskilled labor. Unionization is a costly process. A union chooses how many firms to organize and the union wage. Simulation of the model establishes that skill-biased technological change, which affects the productivity of skilled labor relative to unskilled labor, can potentially explain the observed paths for union membership and income inequality.
Keywords: Mass Production, Computer Age, Skill-Biased Technological Change, Income Inequality, Union Membership
JEL Classification: J51, J24, L23, L11, L16, O14, O33
Suggested Citation: Suggested Citation