Media clips
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Those are all legitimate reasons, but a new paper by Jake Rosenfeld, Patrick Denice and Jennifer Laird, published by the Economic Policy Institute (EPI), argues that there’s another big factor in play: negative spillovers to non-union workers from the loss of union jobs. The paper’s logic is compelling and its evidence rigorous. I won’t vouch for the exact numbers, as many moving parts are in play, some of which are hard to control for in this sort of study. But I’m sure they’re in the ballpark… What could precipitate a positive shock that could lastingly reverse the negative trend in union density? Silvers and other to whom I posed this question had the same answer: centralized bargaining. Especially given the depth of opposition and the existence of the “gig economy” (where the “workplace” hardly exists), organizing one establishment at a time is a recipe for further stagnation. As EPI’s president, Larry Mishel, put it, “We need a design where people have collective bargaining rights as restaurant workers, as opposed to one where they gain those rights one restaurant at a time.”
The Washington Post September 5, 2016 -
That’s hurt everyone’s wages, not just unionized workers. The wage-boosting power of unions usually spills out into other workplaces because they set standards that everyone ends up adopting. A new report from the Economic Policy Institute found that for men working in the private sector who aren’t in a union, their weekly wages would be about 5 percent higher if union membership had stayed at the same rate as it was in 1979. That would mean an extra $2,704 per year on average. Non-union women would also benefit, but the impact would be smaller — a 2 to 3 percent increase in wages — because women have historically been a much smaller share of union workers.
Think Progress September 5, 2016 -
This is very bad news for those hoping that ordinary workers would share in the country’s prosperity. In addition to raising the wages of their members, there is a large spillover effect on the wages of other workers, as documented in a recent paper from the Economic Policy Institute. This paper estimated that the wages of non-union workers would be 5.0 percent higher today if unionization rates had not declined from their level of four decades ago.
The Huffington Post September 5, 2016 -
Also last week, the Economic Policy Institute issued a report titled “Union Decline Lowers Wages of Nonunion Workers.” It explained that the ability of union workers to boost nonunion workers’ pay weakened as the percentage of private-sector workers in unions fell from about 33 percent in the 1950s to about 5 percent today. The EPI researchers found that nonunion private sector men with a high school diploma or less education would receive weekly wages approximately 9 percent higher if union density had remained at 1979 levels. That’s an extra $3,172 a year.
The Huffington Post September 5, 2016 -
In a twist on these observations, the Economic Policy Institute recently released a paper—written by Jake Rosenfeld, an associate professor of sociology at Washington University in St. Louis, Patrick Denice, a postdoctoral research associate at the same school, and Jennifer Laird, a postdoctoral research scientist at the Center on Poverty and Social Policy at Columbia University—that argues the decline of unions, especially since 1979, has had a negative impact on the incomes of non-union workers.
In These Times September 5, 2016 -
Recent research shows that the decline in union bargaining power observed in the 1980s has persisted and has now taken a big toll on union and nonunion workers alike. A just-released report from liberal-leaning think tank the Economic Policy Institute, for example, estimates that the decline in unions — from 23 percent in 1979 to 11 percent in 2013 — and their collective bargaining power has caused men in the private sector to earn $109 billion less every year and women to earn $24 billion less.
Salon September 3, 2016 -
A new report released this week from the Economic Policy Institute (EPI) provides further evidence that the benefits of unions go way beyond their own members, by raising the wages of non-unionized workers as well. In fact, nonunion workers lose $133 billion annually due to the decline in unions, according to the report.
Huffington Post September 2, 2016 -
It is true that unions often limit their activities to matters concerning their membership. But it is wrong to conclude that this work does not help workers more generally or that unions don’t organize for the common good. A new paper from the Economic Policy Institute shows that higher union density has historically led to higher pay among nonunion workers. In fact, if union levels were in 2013 what they were in 1979, nonunion men would be earning an additional $109 billion per year. Groups like the Service Employees International Union have spent millions in a fight to raise the minimum wage to $15 an hour, even though they are unlikely to get an increase in membership in the short term. Call it the tide that lifts all boats… But despite the best efforts of labor, including large protests in the 1990s, globalization has largely continued apace, and U.S. workers have paid the price. According to the Economic Policy Institute, while NAFTA promised to create 200,000 new jobs for American workers, since its 1994 inception 682,900 jobs have been lost. Another EPI report found that international trade depressed wages for non-college-educated workers by 5.5 percent, meaning an annual loss of $1,800 for the average worker. Meanwhile, workers overseas often face even worse labor conditions, with fewer protections and lower wages.
The Washington Post September 2, 2016 -
But there’s another theory to why wages have remained stagnant, one that’s just in time for Labor Day. The left-leaning Economic Policy Institute recently released a study that found that declining union participation has lowered the wages of not only union workers, but nonunion workers as well. Union participation has dropped dramatically in the past 60 years; from roughly one in three workers in the 1950s to about one in 20 today, according to EPI. As the report explains, “Unions, especially in industries and regions where they are strong, help boost the wages of all workers by establishing pay and benefit standards that many nonunion firms adopt.” “For 40 years, we’ve had wage stagnation for middle-wage workers,” said Lawrence Mishel, president of the Economic Policy Institute. “The system has been stacked against workers. There is only a weak presence of collective bargaining.”
PBS News Hour September 2, 2016 -
On the other hand, recent research has traced a direct line between the fall of unions and some of the foremost problems in the US economy, including rising inequality and stagnant wages. A new report from the Economic Policy Institute estimates that the decline of unions has cost private-sector workers nearly $3,000 per year — even more for non-college grads.
The Boston Globe September 2, 2016