W Post: Should you join a union? The research says yes.

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http://www.washingtonpost.com/blogs/wonkblog/wp/2015/02/10/should-you-join-a-union-the-research-says-yes/

A recent study showed that wages declined in newly unionized firms -- but most research still says that you're better off in one than not.



The ability to strike for higher wages: Still a nice thing to have. (Kevin Goldy/The Independent via Associated Press)

By Lydia DePillis February 10

Last week, Vox's Matt Yglesias examined a study that had a depressing outlook for the labor movement. Companies that had recently unionized, economist Brigham Frandsen found, had lower average wages, employed fewer people and were more likely to go belly-up. Yikes!

But it’s not usually a good idea to look at studies in isolation. There’s a lot of other research that complicates the picture. And it’s actually an important question: What good are unions, really? Are dues worth the investment?

Although there’s not a lot of evidence on freshly organized firms specifically, which Frandsen focuses on, there's no clear reason why newly unionized firms shouldn't grow to resemble those that have had unions for a long time (granted, in some sectors with very low union density, being unionized could put a firm at a disadvantage -- but there can be productivity gains as well, so death isn't inevitable). And the research there suggests that you’re still better off as a union member than not.

First, let’s take a look at that Frandsen study (as well as a later version, which dropped in December). Frandsen looks at very close elections to create a comparable set of unions, and finds that wages declined a year after an election (or, more precisely, the average of the period between six and 18 months after an election). He hypothesizes that’s because the higher-paid workers leave to avoid being subject to a contract that might confine how high their salaries can go — which would mean that unions drive away top talent.

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