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The Tradeoff Between Wages and Employment in Trade Union Objectives

Quarterly Journal of Economics 1984 99(2), 215
This paper demonstrates that, contrary to a widely held opinion, the determination of the goals of unions is fully amenable to empirical analysis. A characterization of the wage and employment-setting process in unionized markets is adopted, and its qualitative implications examined. The first-order condition for this model is fitted to time series data on the newspaper industry from ten cities. The International Typographical Union's objective function reveals very restricted opportunities for substituting wages for employment in response to a change in the slope of the employer's labor demand function. Larger union locals place greater emphasis on wages versus employment than smaller union locals.

A Reconsideration of the Effects of Unionism on Relative Wages and Employment in the United States, 1920-1980

Journal of Labor Economics 1984 2(2), 193-232 open access
H. Gregg Lewis' estimates of the relative wage effect of unionism between 1920 and 1958 are routinely cited though they have rarely been subject to scrutiny. This paper extends Lewis' data to 1980 and, in particular, we construct a series on union membership that links up with the data available in the 1970's from the Current Population Surveys. We proceed to reexamine the effects of trade unions both on relative wages and on relative manhours worked.