The Effect of Unions on the Receipt of Unemployment Insurance Benefits

Abstract

Using National Longitudinal Survey of Youth data for 1979–91, the authors analyze the effect of union representation on the likelihood that individuals eligible for unemployment insurance (UI) benefits actually received those benefits. They find that unions had no statistically significant effect on the probability of benefit receipt among white-collar workers, but among eligible blue-collar workers, those who were laid off from union jobs were roughly 23% more likely than comparable nonunion workers to receive UI benefits. Although the analysis does not identify the reasons for this difference, two factors it appears to rule out as determinants are union-negotiated supplemental unemployment benefit plans and differences between union and nonunion workers in expected unemployment duration.