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The consequences of trade union power erosion

Addison, J.T.

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The micro- and macroeconomic effects of the declining power of trade unions have been hotly debated by economists and policymakers. Nevertheless, the empirical evidence shows that the impact of the decline on economic aggregates and firm performance is not an overwhelming cause for concern. However, the association of declining union power with rising earnings inequality and a loss of direct communication between workers and firms is potentially more worrisome. This in turn raises the questions of how supportive contemporary unionism is of wage solidarity, and whether the depiction of the nonunion workplace as an authoritarian “bleak house” is more caricature than reality.

Journal Article Type Article
Online Publication Date May 1, 2014
Publication Date May 1, 2014
Deposit Date May 27, 2014
Publicly Available Date Jun 10, 2014
Journal IZA world of labor
Publisher IZA
Peer Reviewed Peer Reviewed
Volume 2014
Article Number 68
Keywords Union density/coverage, Bargaining structure, Coordination, Macro/micro performance, Redistribution, Voice.
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