Abstract
This study represents an extension of the human capital paradigm as it relates to an individual's decision to migrate. It differs from previous studies by incorporating union membership, a labor market variable, into the model. In effect, the National Labor Relations Act of 1935 granted a monopoly bargaining position to unions. The theoretical implication of a union's monopoly bargaining position is that union wage levels will increase relative to nonunion wages. The increase of relative wages results in union membership granting a property right that possesses positive net present value and hence reduces an employed union member's probability of migrating. Additionally, the supra-competitive remuneration of union members results in a surplus of labor supplied to union firms. Employers respond by using quality screening to hire workers from the larger labor pool. As a result, unemployed union members will on average possess higher levels of human capital, which will increase their probability of migrating above that of their unemployed nonunion cohorts.
| Original language | English |
|---|---|
| Pages (from-to) | 347-355 |
| Number of pages | 9 |
| Journal | Journal of Labor Research |
| Volume | 11 |
| Issue number | 3 |
| DOIs | |
| State | Published - Sep 1990 |
| Externally published | Yes |
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All Science Journal Classification (ASJC) codes
- Strategy and Management
- Organizational Behavior and Human Resource Management
- Management of Technology and Innovation
Cite this
Union membership, economic rents, and migration behavior. / Goss, Ernest; Paul, Chris.
In: Journal of Labor Research, Vol. 11, No. 3, 09.1990, p. 347-355.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Union membership, economic rents, and migration behavior
AU - Goss, Ernest
AU - Paul, Chris
PY - 1990/9
Y1 - 1990/9
N2 - This study represents an extension of the human capital paradigm as it relates to an individual's decision to migrate. It differs from previous studies by incorporating union membership, a labor market variable, into the model. In effect, the National Labor Relations Act of 1935 granted a monopoly bargaining position to unions. The theoretical implication of a union's monopoly bargaining position is that union wage levels will increase relative to nonunion wages. The increase of relative wages results in union membership granting a property right that possesses positive net present value and hence reduces an employed union member's probability of migrating. Additionally, the supra-competitive remuneration of union members results in a surplus of labor supplied to union firms. Employers respond by using quality screening to hire workers from the larger labor pool. As a result, unemployed union members will on average possess higher levels of human capital, which will increase their probability of migrating above that of their unemployed nonunion cohorts.
AB - This study represents an extension of the human capital paradigm as it relates to an individual's decision to migrate. It differs from previous studies by incorporating union membership, a labor market variable, into the model. In effect, the National Labor Relations Act of 1935 granted a monopoly bargaining position to unions. The theoretical implication of a union's monopoly bargaining position is that union wage levels will increase relative to nonunion wages. The increase of relative wages results in union membership granting a property right that possesses positive net present value and hence reduces an employed union member's probability of migrating. Additionally, the supra-competitive remuneration of union members results in a surplus of labor supplied to union firms. Employers respond by using quality screening to hire workers from the larger labor pool. As a result, unemployed union members will on average possess higher levels of human capital, which will increase their probability of migrating above that of their unemployed nonunion cohorts.
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UR - http://www.scopus.com/inward/citedby.url?scp=51249175844&partnerID=8YFLogxK
U2 - 10.1007/BF02685405
DO - 10.1007/BF02685405
M3 - Article
VL - 11
SP - 347
EP - 355
JO - Journal of Labor Research
JF - Journal of Labor Research
SN - 0195-3613
IS - 3
ER -