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Author: Won, Changhee
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Won, Changhee |
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Unionism and Turnover: Exit-Voice Tradeoff, Firm Size, and Spillover Effects Ph.D. Dissertation, The Ohio State University, 1988 Cohort(s): NLSY79, Older Men, Young Men Publisher: UMI - University Microfilms, Bell and Howell Information and Learning Keyword(s): Benefits, Fringe; Firm Size; Firms; Grievance System; Job Tenure; Job Turnover; Unions; Wages It has been shown in the literature that unionism has a deterrent effect on turnover primarily due to union wage premium and voice mechanism. The exit-voice tradeoff hypothesis was established from the tradeoff between voice and exit. The existing test of the exit-voice tradeoff proposed by Freeman is to show a negative coefficient on the union membership variable when wages are controlled in quit regressions. Whether such a test is valid is in fact questionable. If the union effect is to be regarded as the composite effect that captures all but the union wage effect, and if the composite effect contains other effects as well as the voice effect, then union membership is not merely a proxy for union voice. Based on this criticism, the author proposes another test of the exit-voice tradeoff and incorporates an explicit instrument for union voice, that is, the percentage of union contracts covered by grievance provisions. To identify the more precise effects of union voice, some omitted variables such as firm size, fringe benefits, and tenure are also included which are correlated with unionism. This paper proposes that large nonunion employers faced with the threat of unionization may remain nonunion by mimicking unions on grievance provisions but not on seniority rules. To test the exit-voice tradeoff, a turnover model is used in which a worker quits his current job if the total compensation of the best alternative job exceeds the total compensation of his current job plus the cost of changing jobs. The results from the NLSY, Young Men, and Old Men demonstrate that the exit-voice tradeoff is seen among younger union workers but not among older members. The data also support the argument that large unorganized firms mimic union grievance procedures to deter unionization. |
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Bibliography Citation
Won, Changhee. Unionism and Turnover: Exit-Voice Tradeoff, Firm Size, and Spillover Effects. Ph.D. Dissertation, The Ohio State University, 1988. |