Wage Loss Following Displacement: The Role of Union Coverage
Industrial and Labor Relations Review, April 1998
Posted: 3 Feb 1998
Using two Canadian data sets, the authors explore the role of union coverage in displaced workers' wage losses. While only 32% of the workers had unionized jobs prior to displacement, the wage loss suffered by these workers represented about 80% of the wages lost by all displaced workers in both samples. Losing union status was associated with large losses whether or not a worker switched industries after displacement. Extrapolating the results to the United States, the authors estimate that one-third to one-half of U.S. displaced workers' wage losses may be due purely to the loss of union coverage.
JEL Classification: J31, J51
Suggested Citation: Suggested Citation