Politics Matter: Changes in Unionization Rates in Rich Countries, 1960-2010

Researchers have offered several explanations for the decline in unionization. Many emphasize that “globalization” and the technological advances embodied in the “new economy” have made unions obsolete. However, if the decline in unionization is the inevitable response to the twin forces of globalization and technology, then we would expect unionization rates to follow a similar path in countries subjected to roughly similar levels of globalization and technology.

This paper looks union membership and coverage for 21 rich economies, including the United States, and finds over the last five decades a wide range of trends in union membership and collective bargaining. The national political environment, not globalization or technology, is the most important factor driving long-run changes in unionization rates in the United States.

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John Schmitt

John Schmitt is a senior economist with the Center for Economic and Policy Research in Washington, DC. He has written extensively on economic inequality, unemployment, the new economy, the welfare state, and other topics for both academic and popular audiences. He has also worked as a consultant for national and international organizations including the American Center for International Labor Solidarity, the Global Policy Network, the International Labor Organization, the United Nations Economic Commission for Latin America, and others. Schmitt’s research has focused primarily on inequality in the US labor market and the role of labor-market institutions in explaining international differences in economic performance, particularly between the United States and Europe. Schmitt has co-authored (with Lawrence Mishel and Jared Bernstein) three editions of The State of Working America (Cornell University Press). He has also contributed to The American Prospect, The Boston Review, Challenge, The Guardian, The International Herald Tribune, The Washington Post, and other newspapers and magazines.

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Alexandra Mitukiewicz

Alexandra Mitukiewicz is a domestic intern for the Center for Economic Policy and Research. Alexandra graduated from Wellesley College in 2011 with a B.A. degree in Economics. Before starting her internship at CEPR, Alexandra was a summer intern at Resources for the Future (RFF), a D.C.-based environmental economics think-tank, where she worked on various research projects with RFF Fellows. She also served as a program intern at Hospitality Homes, a non-profit organization providing no-cost housing to families of patients undergoing medical treatments in Boston-area hospitals.

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