Did Globalization Reduce Unionisation? Evidence from U.S. Manufacturing

Elisabetta Magnani and David Prentice
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Elisabetta Magnani: The University of New South Wales

No 2000.17, Working Papers from School of Economics, La Trobe University

Abstract: How do globalization economic conditions affect labour market institutions such as unionism? We draw on recent theoretical and empirical work to yield a more comprehensive set of hypotheses related to the decline in unionisation. Furthermore, we extend recent theoretical work to highlight a direct role for competition (domestic and international) in determining unionisation. This paper uses a unique data set of U.S. three-digit manufacturing industries from 1972 to 1994 to test the hypothesis that domestic and international competition reduce unionisation. The main finding is that in spite of the importance of quasi-rents to explain unionisation, foreign and domestic competition are also significant determinants of unionisation.

Keywords: Manufacturing; Economic Conditions; Labour Market EDIRC Provider-Institution: RePEc:edi:smlatau (search for similar items in EconPapers)
Pages: 32 pages
Date: 2000
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Journal Article: Did globalization reduce unionization? Evidence from US manufacturing (2003)
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