Worker Preferences for Union Representation

A model of the determinants of worker preferences for union representation as distinct from their actual union status is developed and estimated using data from the Quality of Employment Survey. In order to implement the model, a pair of econometric issues were addressed. First, the worker preferences were available only for nonunion workers. After correcting for this censoring, it was found that preference for union representation was higher among the workforce in general than among the nonunion workforce. In addition, preferences for representation vary much more by worker characteristics among the workforce in general than they do among the nonunion workforce. This is undoubtedly due to sorting based on worker preferences. The second problem regarded proper estimation of the union-nonunion wage differential, which was hypothesized to be a positive determinant of worker's preferences for union representation. Three different measures were used and, while there was some variation between them, they all showed a similar relationship with worker preferences