Do higher minimum wages decrease union membership in minimum-wage-intensive industries?

Jeffrey Clemens and Michael Strain

Applied Economics Letters, 2024, vol. 31, issue 16, 1453-1461

Abstract: Over the past decade, organized labour has played a significant role in advocating for minimum wage increases. In this paper, we investigate the effects of minimum wage increases on union membership among individuals in minimum wage intensive industries. We find no evidence of a change in union membership among high-skilled workers in these industries. Consistent with a ‘free-riding’ hypothesis, we find evidence that minimum wage increases predict declines in union membership among low-skilled workers in these industries. These workers are the minimum wage’s most direct beneficiaries.

Date: 2024
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DOI: 10.1080/13504851.2023.2188162

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