The Racial Composition of Unemployment: The Role of Unions

John Heywood and Hamid Mohtadi ()

The Manchester School of Economic & Social Studies, 1995, vol. 63, issue 2, 175-95

Abstract: A theoretical model demonstrates that when minority workers are subject to discrimination in the nonunion sector they will comprise a disproportionate share of the pool waiting for union jobs. This results because the union sector--with its uniform wages--offers minority workers substantially higher union premiums than those available to majority workers. Direct empirical tests confirm that racial minorities do represent a disproportionate share of the union pool. This result persists across specifications that account for other characteristics of the workers, for characteristics of the job search, and for past union status. Copyright 1995 by Blackwell Publishers Ltd and The Victoria University of Manchester

Date: 1995
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Persistent link: https://EconPapers.repec.org/RePEc:bla:manch2:v:63:y:1995:i:2:p:175-95

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