The economic effects of labor unions revisited

Using a variety of statistical techniques, we conclude that labor unions have reduced U.S. output by significant amounts -- trillions of dollars over time. Additionally, the employment-population ratio and the unemployment rate have been adversely affected by the presence of unions. From the very beginning, unionization materially lowered employment in the auto and steel industries, and union militancy in coal mining has contributed importantly to largely eliminating employment in this once large industry. While some individual workers have profited from unions, the aggregate economic impact is strongly negative.
I. Labor Unions and Their Effects Workers who join labor unions expect an improvement in their utility, typically manifested in the form of higher wages and benefits. Indeed, there is [...]