Unions are a critical force in American society, ensuring that everyday Americans can earn decent pay and benefits and have a voice in democracy. Studies have shown that unions strengthen the economy and democracy by boosting wages for workers, reducing wage inequality, increasing voter turnout for both union and nonunion voters, and providing a counterbalance to wealthy interest groups. Historically, unions have played a significant role for American workers by helping create the 40-hour workweek, child labor laws, and improvements in health insurance. At their peak in 1945, unions represented one-third of all U.S. workers.
However, decades of attacks on unions, weak U.S. labor laws, and a changing economy have caused union membership to decline steadily; by 2023, unions represented just 10 percent of workers. Recently though, the popularity and activity of unions have grown to levels not seen in decades.
New data confirm that unions raise wages and wealth for all workers while their decline explains the rise in wage inequality. Additionally, unions increase political participation and ensure middle-class representation across various issues.
1. Unions raise wages for workers from every background
When workers unite in unions, they can negotiate higher wages and benefits. Research consistently demonstrates that unions raise wages for various types of workers. New data on 2023 workers from the “earner study” portion of the Bureau of Labor Statistics’ Current Population Survey (CPS) support these findings.
The union wage premium—or the percent change in weekly earnings due to union membership—for full-time workers is about 10 percent after controlling for factors such as race, gender, age, occupation, and education. Specifically, women who join a union can expect a 7.8 percent wage increase; Hispanic workers see a 12 percent increase; and those without a college degree see an 11.9 percent increase.
Union membership also increases worker wealth—the total value of what people own minus their debts—by improving job stability and providing enhanced benefits like pension plans and health insurance. Analysis from the Center for American Progress shows that median wealth for union households is $338,482 compared to $199,948 for nonunion households.
2. The decline in union membership helps explain rising wage inequality
The erosion of some benefits due to declining union membership has led to stagnant real wages among workers and increased wage inequality.
Research by Bruce Western of Harvard University and Jake Rosenfeld of the University of Washington found that between 1973 to 2007 declining union density explained up to one-third of rising wage inequality among men and one-fifth among women.
Rising wage inequality leads to economic concentration of power which erodes social cohesion reduces intergenerational mobility decreases middle-class wealth share
3 Unions increase political participation
Unions also boost political participation particularly voter turnout They decrease costs increase benefits leading more people participate Unions achieve this through door knocking election awareness assistance polling stations informing members democratic participation encouraging votes pro-worker politicians weakening fewer working-class candidates state legislatures Congress While being member makes person more likely vote participate politics nonmembers often recipients efforts educate mobilize Political scientists Benjamin Radcliff Patricia Davis analysis shows increasing voter turnout rates states For example if unionization were percentage points higher during presidential election million Americans would voted
4 Unions represent middle-class interests
Lastly across range issues advocate policies central class According research political scientist Martin Gilens most powerful interest groups advocate policies benefit narrowly defined members relatively few focus policies supports Of organizations represent arguably important because advocate wide range issues raising minimum increasing healthcare coverage promoting retirement security Other groups aligned such universities generally take positions relatively small number policy areas Figure shows modified analysis focusing effect arranges four economic policy-based axis correlation based similar preferences Americans percentile determined poll questions AFL-CIO chosen represent largest federation United States As shown closely aligned interests Health Insurance Association known Chamber Commerce oil companies dataset advocated policy changes compared Chamber Commerce’s oil companies’ Health Insurance Association’s Thus advance numerous major changes aligned interests Anti-middle spend significantly money lobbying remain important check power example despite similar range supported spent million compared only million If regain policymaking voice reinvigorated critical fight Conclusion Workers better off collective voice earn more market stand interests Stronger associated higher engaged citizens stronger class policymakers strive make economy work everyone include solutions passing Protecting Right Organize PRO Act Public Service Freedom Negotiate other important reforms promote sectoral bargaining ensure strong rights incentives clear path collective bargaining short economic democratic prosperity rest rebuilding strength
