Working Paper: NBER ID: w2399
Authors: Richard B. Freeman
Abstract: This paper contrasts the differing experience of public sector unionism, which has expanded in the United States, and private sector unionism, which has contracted, in the past several decades. It uses the experience of other countries, particularly Canada, to rule out some explanations of the divergent trends. The paper finds that the major reason for the private sector decline is increased management opposition to union organization, motivated in part by profit-seeking behavior, and augmented by trade union responses; and that the major reason for the public sector union expansion is decreased market opposition due to pas- sage of comprehensive collective bargaining laws and motivated in part by vote-seeking behavior.
Keywords: unionism; public sector; private sector; labor market; collective bargaining
JEL Codes: J51; J52
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Increased management opposition to union organization (J58) | Decline in private sector unionism (J58) |
| Profit-seeking behavior (D22) | Increased management opposition to union organization (J58) |
| Passage of comprehensive collective bargaining laws (J58) | Expansion of public sector unionism (J58) |
| Decreased market opposition to unionization (J51) | Expansion of public sector unionism (J58) |