Working Paper: NBER ID: w0242
Authors: Richard B. Freeman
Abstract: This paper examines the effect of trade unionism on the exit behavior of workers in the context of Hirschman's exit-voice dichotomy. Unionism is expected to reduce quits and permanent separations and raise job tenure by providing a "voice" alternative to exit when workers are dissatisfied with conditions. Empirical evidence supports this contention, showing significantly lower exit for unionists in several large data tapes. It is argued that the grievance system plays a major role in the reduction in exit and that the reduction lowers cost and raises productivity.
Keywords: unionism; labor market; exit-voice; job tenure; quits; separations
JEL Codes: J51; J53; J41
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| trade unionism (J51) | exit behavior (Y60) |
| trade unionism (J51) | quit rates (J63) |
| trade unionism (J51) | separation rates (J12) |
| union voice (J51) | exit behavior (Y60) |
| unionism (J51) | job tenure (M51) |
| unionism (J51) | workplace relations (J53) |
| unionism (J51) | worker behavior (J29) |