Title: Deunionization, Technical Change and Inequality
Abstract:Over the last 25 years, the US and the UK have experienced sharp increases in wage inequality and rapid deunionization. We argue that these two phenomena are related, and that skill-biased technical c...Over the last 25 years, the US and the UK have experienced sharp increases in wage inequality and rapid deunionization. We argue that these two phenomena are related, and that skill-biased technical change has been an important factor in deunionization as well as in the rise in inequality. Skill-biased technical change causes deunionization because it increases the outside option of skilled workers, undermining the coalition among skilled and unskilled worker in support of unions. Our approach implies that although deunionization is not the underlying cause of the increase in inequality, it amplifies the direct effect of skill-biased technical change by removing the wage compression imposed by unions. We also show that deunionization may happen inefficiently.Read More
Publication Year: 2001
Publication Date: 2001-04-01
Language: en
Type: article
Access and Citation
Cited By Count: 63
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