LABOR ECONOMICS
LABOR ECONOMICS
8th Edition
ISBN: 9781260004724
Author: BORJAS
Publisher: RENT MCG
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Chapter 10, Problem 1RQ
To determine

Explain the factors accounted for the decline in the private sector unionism and rapid increase in the public sector unionism.

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Explanation of Solution

The factors accounted for the decline in the private sector unionism since 1960’s can be listed as follows.

  • Use of yellow-dog contract by the employers: this contract prohibited the joining of new labors in the union. The restrictions faced by the labors lead to a decline in the private sector unionism.
  • During the middle of 1960’s, the wages of workers in the private sector begin to rise. This also becomes a reason of decline in the private sector unionism.
  • Corruption by the union leaders: the increased corruption among the union leaders pulls down the faith of union members on union.

The factors accounted for the rapid increase in the public sector unionism during the same period can be listed as follows.

  • Collective bargaining power over wages.
  • Good working and achieved benefits of the members.
  • Provided job securities.
  • Representing members in any dispute, if it necessary.

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