Thank you for your response.
Here's an interesting piece I'm sure you'd like to digest:
Unions, inequality, and faltering middle-class wages
Unions, inequality, and faltering middle-class wages | Economic Policy Institute
OK, I read your article. It suffers from some serous shortcomings. It models a closed system, a static system.
The biggest flaw is that it pays no attention at all to what happened to the labor supply with the opening of the immigration pipeline in 1965. Zilch. The previous 40+ years had seen that pipeline closed. Everyone is harking back to those days, the high tide of the union movement.
Unionization is a powerful agent when it operates in a tight labor market because unions work as a huge multiplier in boosting labor negotiating power against capital and capital doesn't have any replacement labor easily available and, this is important too, other employers are facing the same constraints. Open and aggressive immigration completely undermines those conditions. It's no freaking secret that the union leaders of that era, like Gompers, were the movers and shakers behind immigration restriction. They understood perfectly well what happens when the labor market has to find room for hundreds of thousands to millions of new immigrant workers - that weakens the power of labor.
This analysis ignores all of that and then tries to present a case for unionization. That's on the same level of insanity as an article talking about how to have a child and completely omitting the instructions on having sex.
Unions are effective at exploiting conditions and taking a piece of hide out of the employer. For them to do that they need the right environment. A labor market which has millions upon millions of unemployed and discouraged workers deprives a union of leverage.
There were a few interesting tidbits in that article, facts that all of us know but which we rarely see documented. Like this bit:
Sizable differences exist in union wage premiums across demographic groups, with blacks and Hispanics having union premiums of 17.3 percent and 23.1 per*cent, respectively, far higher than the 10.9 percent union premium for whites. Consequently, unions raise the wages of minorities more than of whites (the wage effect of unionism on a group is calculated as the unionism rate times the union premium), helping to close racial/ethnic wage gaps. Hispanic and black men tend to reap the greatest wage advantage from unionism, though minority women have substantially higher union premiums than their white counterparts. Unionized Asians have a wage premium somewhat higher than that of whites.
Unionized immigrant male workers obtain a premium comparable to that of male workers overall, whether they have immigrated relatively recently (within 10 years) or further back in time. Women who have immigrated recently have a higher union premium than women overall, 16.2 percent versus 9.1 percent. Im*migrant women who have been in the United States more than 10 years have a union premium comparable to that of women overall.
Unions tend to help the least deserving and do least for the most capable. It's startling to see a leftist outfit like EPI actually acknowledge that.
Numerous studies have documented that wage discrimination against blacks ended back in the 1970s. Differing wages reflect differing human capital endowments. A white man and a black man with identical human capital endowments earn exactly the same income in a particular job. That blacks and Hispanics are earning more than whites when they join a union really highlights the UNEARNED PREMIUM that is directed at them. Same with a new immigrant. The gains are greater to the newcomer to America than the person born here.
What the analysis also doesn't address is the changing nature of the economy. In earlier eras when unions were more prevalent, menial labor was also more common. As the economy has grown in sophistication so too have opportunities for higher pay premiums to those with the smarts to do the new jobs. This has resulted in a commodification of menial labor. Some menial jobs in earlier eras could put the worker into the middle class. No longer. You can actually see this today when you look at jobs like meat cutters. Remember Paulie in the Rocky movies? Same with roofing, construction, bricklaying, etc. Most of these jobs are now being done by immigrants. Why? Because the barrier to entry is very low. You don't need a whole lot of skill and you don't need to speak English. On top of this add the oversupply of labor and the result is decreasing wages and people falling out of the middle class. Unionization doesn't solve the problem. If you want to push these jobs back towards middle class then you need to dry up the labor supply.
Look, that article had a number of flaws. It's not good public policy analysis for one simple reason - if they don't understand the problem that they're analyzing, then any solution offered to address the problem is going to be wrong. They don't understand the problem and they show this to us by completely ignoring the abundant inflow of labor via immigration. Allowing for a few years for the 1965 reforms to ramp up and we're right at the point, early 1970s, when union economists always point to as the start of the big decline. Look back on the graphs I posted. After 1965 matters started really improving for Capital because the bargaining power of labor continued to fall, year after year, as the presence of immigrants flooded the labor markets.