Unions and Job Security in the Public Sector

51 Pages Posted: 5 Jul 2004 Last revised: 7 Oct 2022

See all articles by Steven G. Allen

Steven G. Allen

North Carolina State University - Poole College of Management

Date Written: December 1986

Abstract

This study examines the effect of unions on job security in the public and private sectors. Despite much lower unemployment rates for public than private sector workers, once one controls for differences in worker and job characteristics, the odds of being unemployed are identical for nonunion workers in the public and private sectors. The picture is quite different for union workers, who face greater odds of becoming unemployed than nonunion workers in private sector jobs but much lower chances of becoming unemployed in the public sector. The ability of unions to reduce layoff and unemployment rates in the public sector seems attributable to the political power to prevent budget cuts and the absence of Unemployment Insurance subsidies or supplemental unemployment benefits.

Suggested Citation

Allen, Steven G., Unions and Job Security in the Public Sector (December 1986). NBER Working Paper No. w2108, Available at SSRN: https://ssrn.com/abstract=344870

Steven G. Allen (Contact Author)

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