Unions and Nonunion Pay in the United States, 1977-2015

• In Event: 1255 - Workers' Power in Diverse Contexts

Abstract

We provide the most extensive investigation into the connection between union power and nonunion worker pay to date. We leverage nearly four decades of Current Population Survey (CPS) data on millions of U.S. workers to test whether union density, measured at various levels, helps raise average wages among unorganized workers. We find stable and substantively large positive effects of private sector union strength at the occupation-region level on nonunion private sector workers’ wages, especially for men. These results are robust to the inclusion of controls for the risk of automation, offshoring, the related rising demand for skill, overall employment levels, and the strength of public sector unions. Analyses of public sector unions and nonunion private sector pay reveal a robust positive relationship – but one limited to women, again revealing how occupational segregation interacts with pay-setting institutions to influence wage outcomes.

Authors

• Jake Rosenfeld, Washington University-St. Louis

• Patrick Anthony Denice, Washington University-St. Louis