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Unions In America

 


             Workers who join labor unions expect an improvement in their well-being, typically in the form of higher wages and benefits. Indeed, there is substantial literature that suggests that, other things equal, unionized workers do receive higher rates of compensation than their nonunion counterparts. Labor unions may also promote practices that reduce hours worked or productivity growth (from union rules, reduced capital formation, barriers to resource mobility, etc.)(Vedder and Gallaway, 2002). .
             While there is overwhelming evidence that unions are good for the American union workers, how about all the people who don't belong to unions. Typically as wage rates increase through negotiations of union leaders, job opportunities in the unionized industries and occupations decrease, increasing the supply of labor in the nonunion sector. This drives down wages in those areas and increases the relative number of lower wage jobs available to workers engaged in the job-search process (Vedder and Gallaway, 2002). .
             Union density seems to have an impact of the rate of in and out migration of people. The national average union density is 13.5 percent. States with a lower rate of unionism than the national average tend to have more people moving in and states with a higher rate have more people leaving. According to the U.S. Bureau of the Census (2000), the top 11 states with the highest union density, 17.7 percent median, had the highest rate of out-migration of 2,984,007 people in ten years. Compared to the 11 states with the lowest union density having a net in-migration of 3,530,108 (Vedder and Gallaway, 2002). .
             Another interesting comparison is what one may call the "marginal employment-population ratio" during the two periods of 1953-1973 with 1973-1999 (Vedder and Gallaway, 2002). The first period is one of relatively high union density, whereas the second one is clearly an era of steady decline in the incidence of unionization.


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