In this podcast episode dedicated to the new edition of the Handbook of Labor Economics, Professor Suresh Naidu from Columbia University discusses the recent resurgence of union power, for example, in the context of the successful United Auto Workers (UAW) strike in 2023.
The conversation highlights several key points with policy implications: Do unions affect inequality? How effective is union membership? Do they protect the rights and the benefits of union members, or do they have spillover effects in the rest of the labour market?
Professor Naidu takes a historical perspective and discusses the shift in the balance of power between employers and workers over the 20th century, up to the post-COVID era, characterized by a tight labour market and high corporate profits. He argues that the spillover effects of union-negotiated contracts can raise wages even for non-union workers, suggesting that a stronger union presence could be a tool for addressing income inequality on a broader scale.
