R P O E S L E I T POLITICAL ECONOMY RESEARCH INSTITUTE A I C R C A H University of Massachusetts Amherst L E I N C S O T I N T U O T Social Attitudes, Labor Law, M E and Union Organizing: Y Toward A New Economics of Union Density Thomas I. Palley and Robert M. LaJeunesse 2005 10th floor Thompson Hall University of Massachusetts Amherst, MA, 01003-7510 Telephone: (413) 545-6355 Facsimile: (413) 545-2921 Email:
[email protected] Website: http://www.umass.edu/peri/ WORKINGPAPER SERIES Number 93 Social Attitudes, Labor Law, and Union Organizing: Toward A New Economics of Union Density Abstract Much has been written about union wage bargaining. Much less has been written about union density, which has been viewed as simply the employment outcome under the wage bargain. This paper presents a new dynamic model of union density that exhibits multiple equilibria and path-dependency. The model builds upon Freeman (1998) who identified the importance of union spending on organizing and business spending on opposing unions. It emphasizes the demand for union representation which depends on wage bargaining outcomes, the state of labor law, and socio-economic factors impacting public attitudes to unions. The model is used to provide a narrative account of the historical evolution of union density in the U.S. and to identify factors important for its future evolution. Keywords: Union density, labor law, union organizing, employer opposition. JEL ref.: J5 Thomas I. Palley Chief Economist U.S. – China Economic & Security Review Commission Washington, DC 20001
[email protected] And Robert M.