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Wage Loss following Displacement: The Role of Union Coverage

Peter Kuhn () and Arthur Sweetman ()

ILR Review, 1998, vol. 51, issue 3, 384-400

Abstract: Using two Canadian data sets, the authors explore the role of union coverage in displaced workers' wage losses. While only 32% of the workers had unionized jobs prior to displacement, the wage loss suffered by these workers represented about 80% of the wages lost by all displaced workers in both samples. Losing union status was associated with large losses whether or not a worker switched industries after displacement. Extrapolating the results to the United States, the authors estimate that one-third to one-half of U.S. displaced workers' wage losses may be due purely to the loss of union coverage.

Date: 1998
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Handle: RePEc:sae:ilrrev:v:51:y:1998:i:3:p:384-400