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Unit costs, legal shocks, and unionization in construction

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Abstract

I develop an econometric model to examine three potential causes of the decline of unionization in the construction industry in the 1970s and 1980s: increased cost relative to the open shop, reduced coverage by prevailing wage laws, and expanded double-breasting in response to NLRB decisions. The results show that relative cost was the decisive factor in the 1970s, whereas double-breasting was the most plausible explanation in the 1980s.

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References

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Research support was provided by North Carolina State University. I am deeply indebted to Barry Hirsch for estimating the union-nonunion wage gaps for 1983–1991. An appendix describing the definitions and sources of the variables used in this analysis is available from the author.

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Allen, S.G. Unit costs, legal shocks, and unionization in construction. Journal of Labor Research 16, 367–377 (1995). https://doi.org/10.1007/BF02685763

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  • DOI: https://doi.org/10.1007/BF02685763

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