Friday, January 4, 2013

Was the decline of American unions inevitable? Not if you ask Canada.

Since the 1960s, organized labor in the United States has been steadily decaying. A half-century ago, 30 percent of American workers were members in a union. By last year, that had shriveled to 11.8 percent. Economists have offered up all sorts of theories for the drop, from the shrinking manufacturing workforce to foreign competition that has made U.S. companies more hostile toward unions.
But a new paper (pdf) from Kris Warner of the Center on Economic and Policy Research suggests that the decline in U.S. labor unions wasn’t simply due to inexorable economic forces. Government policies likely played a big role too. And the easiest way to see this, Warner argues, is by comparing unionization rates in the United States to rates in nearby Canada, “the country that is probably more like the U.S. than any other – economically, socially, and politically.”

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