Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/307603 
Year of Publication: 
2024
Series/Report no.: 
Discussion Paper No. 2024/7
Publisher: 
Freie Universität Berlin, School of Business & Economics, Berlin
Abstract: 
Motivated by the recent surge in union drives, we present a theoretical model of the factors that influence unionization. An employee seeking to unionize their workplace assembles organizers to persuade coworkers to vote in favor. If unionization benefits workers, it is more likely to succeed when the organizers are credible. Credibility depends on the organizers not being overly biased and/or bearing significant organizational costs. Our theory explains why grassroots movements, rather than established unions, often succeed in organizing workplaces. Interestingly, the likelihood of successful unionization, when it benefits workers, is non-monotonic with respect to organizational costs. When such costs are low, a firm that opposes unionization and targets organizers may paradoxically increase the chances of success. However, the unionization drive is ineffective if the firm's opposition is sufficiently strong, as this makes organizational costs prohibitive.
Subjects: 
Unions
Labor Organization
Campaigns
JEL: 
D71
D83
D23
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.