Although the working poor are a much larger population than the unemployed poor, U.S. poverty research devotes much more attention to joblessness than to working poverty. Research that does exist on working poverty concentrates on demographics and economic performance and neglects institutions. Building on literatures on comparative institutions, unionization, and states as polities, we examine the influence of a potentially important labor market institution for working poverty: the level of unionization in a state. Using the Luxembourg Income Study (LIS) for the United States, we estimate (1) multi-level logit models of poverty among employed households in 2010; and (2) two-way fixed-effects models of working poverty across seven waves of data from 1991 to 2010. Further, we replicate the analyses with the Current Population Survey while controlling for household unionization, and assess unionization’s potential influence on selection into employment. Across all models, state-level unionization is robustly significantly negative for working poverty. The effects of unionization are larger than the effects of states’ economic performance and social policies. Unionization reduces working poverty for both unionized and non-union households and does not appear to discourage employment. We conclude that U.S. poverty research can advance by devoting greater attention to working poverty, and by incorporating insights from the comparative literature on institutions.
ApplebaumEilleenBergPeterFrostAnnPreussGil. 2003. “The Effects of Work Restructuring on Low-Wage, Low-Skilled Workers in U.S. Hospitals.” Pp. 77–117 in Low Wage America, edited by ApplebaumE.BernhardtA.MurnaneR. J.New York: Russell Sage Foundation.
2.
BattRosemaryHunterLarry W.WilkSteffanie. 2003. “How and When Does Management Matter? Job Quality and Career Opportunities for Call Center Workers.” Pp. 270–313 in Low Wage America, edited by ApplebaumE.BernhardtA.MurnaneR. J.New York: Russell Sage Foundation.
3.
BernhardtAnnetteDresserLauraHattonErin. 2003. “The Coffee Pot Wars: Unions and Firm Restructuring in the Hotel Industry.” Pp. 33–76 in Low Wage America, edited by ApplebaumE.BernhardtA.MurnaneR. J.New York: Russell Sage Foundation.
4.
BlanchflowerDavid G.FreemanRichard B.2000. Youth Employment and Joblessness in Advanced Countries. Chicago: University of Chicago Press.
5.
BlankRebecca M.1997. It Takes a Nation. Princeton, NJ: Princeton University Press.
6.
BlankRebecca M.2009. “Economic Change and the Structure of Opportunity for Less-Skilled Workers.” Pp. 63–91 in Changing Poverty, Changing Policies, edited by CancianM.DanzigerS. H.New York: Russell Sage Foundation.
7.
BlankRebecca M.DanzigerSheldon H.SchoeniRobert F.2006. Working and Poor. New York: Russell Sage Foundation.
8.
BlauFrancine D.KahnLawrence M.2002. At Home and Abroad. New York: Russell Sage Foundation.
9.
BradyDavid. 2009. Rich Democracies, Poor People. New York: Oxford University Press.
10.
BradyDavidFullertonAndrewCrossJennifer Moren. 2009. “Putting Poverty in Political Context: A Multi-Level Analysis of Adult Poverty across 18 Affluent Western Democracies.” Social Forces88:271–300.
11.
BradyDavidFullertonAndrewCrossJennifer Moren. 2010. “More than Just Nickels and Dimes: A Cross-National Analysis of Working Poverty in 18 Affluent Democracies.” Social Problems57:559–85.
12.
BradyDavidLeichtKevin. 2008. “Party to Inequality: Right Party Power and Income Inequality in Rich Western Democracies.” Research in Social Stratification and Mobility26:77–106.
13.
Brooks-GunnJeanneDuncanGreg J.KlebanovPamela KatoSealandNaomi. 1993. “Do Neighborhoods Influence Child and Adolescent Development?” American Journal of Sociology99:353–95.
14.
CancianMariaDanzigerSheldon H.2009. Changing Poverty, Changing Policies. New York: Russell Sage Foundation.
15.
ChenWen-HaoCorakMiles. 2008. “Child Poverty and Changes in Child Poverty.” Demography45:537–53.
16.
CornfieldDaniel B.FletcherBill. 2001. “The U.S. Labor Movement: Toward a Sociology of Labor Revitalization.” Pp. 61–82 in Sourcebook of Labor Markets, edited by KallebergA.BergI.New York: Plenum.
17.
DanzigerSheldon H.HavemanRobert H.2001. Understanding Poverty. New York and Cambridge, MA: Russell Sage Foundation and Harvard University Press.
18.
DanzigerSheldon H.SandefurGary D.WeinbergDaniel H.1994. Confronting Poverty. New York and Cambridge, MA: Russell Sage Foundation and Harvard University Press.
19.
DiPreteThomas A.2002. “Life Course Risks, Mobility Regimes, and Mobility Consequences: A Comparison of Sweden, Germany, and the United States.” American Journal of Sociology108:267–309.
20.
DoellgastVirginiaHoltgreweUrsulaDeeryStephen. 2009. “The Effects of National Institutions and Collective Bargaining Arrangements on Job Quality in Front-Line Service Workplaces.” Industrial & Labor Relations Review62:489–509.
21.
ErenOzkan. 2009. “Does Membership Pay Off for Covered Workers? A Distributional Analysis of the Free Rider Problem.” Industrial & Labor Relations Review62:367–80.
22.
ErickcekGeorge A.HousemanSusan N.KallebergArne L.2003. “The Effects of Temporary Services and Contracting Out on Low-Skilled Workers: Evidence from Auto Suppliers, Hospitals, and Public Schools.” Pp. 368–403 in Low Wage America, edited by ApplebaumE.BernhardtA.MurnaneR. J.New York: Russell Sage Foundation.
23.
FreemanRichard B.MedoffJames L.1984. What Do Unions Do?New York: Basic Books.
24.
FreemanRichard B.RodgersWilliam M.III. 2005. “The Weak Jobs Recovery: Whatever Happened to ‘The Great American Jobs Machine’?” Economic Policy Review11:3–18.
25.
GautieJeromeSchmittJohn. 2009. Low-Wage Work in the Wealthy World. New York: Russell Sage Foundation.
26.
GordonDavid M.1972. Theories of Poverty and Underemployment: Orthodox, Radical, and Dual Labor Market Perspectives. Lexington, MA: Lexington Books.
27.
HallRobert E.2006. “The Macroeconomy and Determinants of the Earnings of Less-Skilled Workers.” Pp. 89–112 in Working and Poor, edited by BlankR. M.DanzigerS. H.SchoeniR. F.New York: Russell Sage Foundation.
28.
HarknettKristenMcLanahanSara. 2004. “Explaining Racial and Ethnic Differences in Marriage among New, Unwed Parents.” American Sociological Review69:790–811.
29.
HarrisKathleen Mullan. 1993. “Work and Welfare among Single Mothers in Poverty.” American Journal of Sociology99:317–52.
30.
HauanSusan M.LansdaleNancy S.LeichtKevin T.2000. “Poverty and Work Effort among Urban Latino Men.” Work and Occupations27:188–222.
31.
HicksAlexander. 1999. Social Democracy and Welfare Capitalism. Ithaca, NY: Cornell University Press.
32.
HicksAlexanderFriedlandRogerJohnsonEdwin. 1978. “Class Power and State Policy: The Case of Large Business Corporations, Labor Unions and Governmental Redistribution in the American States.” American Sociological Review43:302–315.
33.
HirschBarry T.MacphersonDavid A.2003. “Union Membership and Coverage Database from the Current Population Survey: Note.” Industrial and Labor Relations Review56:349–54.
34.
HolzerHarry J.2009. “The Labor Market and Young Black Men: Updating Moynihan’s Perspective.” Annals of the American Academy of Political and Social Science621:147–69.
35.
IcelandJohnKimJosh. 2001. “Poverty among Working Families: Insights From an Improved Poverty Measure.” Social Science Quarterly82:253–67.
36.
JacobsDavidDixonMarc. 2010. “Political Partisanship, Race, and Union Strength from 1970 to 2000: A Pooled Time Series Analysis.” Social Science Research39:1059–72.
37.
JencksChristopherPetersonPaul E.1991. The Urban Underclass. Washington, DC: The Brookings Institution.
38.
JenkinsJ. CraigLeichtKevin T.WendtHeather. 2006. “Class Forces, Political Institutions, and State Intervention: Subnational Economic Development Policy in the United States, 1971–1990.” American Journal of Sociology111:1122–80.
39.
KahnLawrence M.1978. “The Effects of Unions on the Earnings of Nonunion Workers.” Industrial and Labor Relations Review31:205–216.
40.
KahnLawrence M.MorimuneKimio. 1977. “Unions and Employment Stability: A Sequential Logit Approach.” International Economic Review20:217–35.
41.
KallebergArne L.2007. The Mismatched Worker. New York: Norton.
42.
KallebergArne L.WallaceMichaelAlthauserRobert P.1981. “Economic Segmentation, Worker Power, and Income Inequality.” American Journal of Sociology87:651–83.
43.
KingMiriamRugglesStevenAlexanderTrentLeicachDonnaSobekMatthew. 2010. Integrated Public Use Microdata Series, Current Population Survey: Version 2.0. [Machine-readable database]. Minneapolis, MN: Minnesota Population Center [producer and distributor] (http://cps.ipums.org).
KorpiWalter. 1983. The Democratic Class Struggle. Boston: Routledge.
46.
KristalTali. 2010. “Good Times, Bad Times: Postwar Labor’s Share of National Income in Capitalist Democracies.” American Sociological Review75:729–63.
47.
LeichtKevin T.1989. “On the Estimation of Union Threat Effects.” American Sociological Review54:1035–47.
48.
LeichtKevin T.WallaceMichaelGrantDon Sherman. 1993. “Union Presence, Class and Individual Earnings Inequality.” Work and Occupations20:429–51.
49.
LohmannHenning. 2009. “Welfare States, Labour Market Institutions and the Working Poor: A Comparative Analysis of 20 European Countries.” European Sociological Review25:489–504.
50.
Luxembourg Income Study (LIS) Database. United States; October 2012–March 2013. Luxembourg: LIS. (http://www.lisdatacenter.org).
51.
MagnaniElisabettaPrenticeDavid. 2010. “Did Reducing Unionization Create More Flexible American Industries?” Industrial & Labor Relations Review63:662–80.
52.
MasseyDouglas S.ShibuyaKumiko. 1995. “Unraveling the Tangle of Pathology: The Effect of Spatially Concentrated Joblessness on the Well-Being of African Americans.” Social Science Research24:352–66.
53.
MaxwellNan L.2007. “Wage Differentials, Skills, and Institutions in Low-Skill Jobs.” Industrial & Labor Relations Review61:394–409.
54.
MeadLawrence. 1993. The New Politics of Poverty. New York: Basic Books.
55.
MollerStephanie. 2008. “The State and Structural Vulnerability: Political Determinants of Income.” Research in Social Stratification and Mobility26:323–40.
56.
MollerStephanieAldersonArthur S.NielsenFrancois. 2009. “Changing Patterns of Income Inequality in U.S. Counties, 1970–2000.” American Journal of Sociology114:1037–1101.
57.
MollerStephanieBradleyDavidHuberEvelyneNielsenFrancoisStephensJohn D.2003. “Determinants of Relative Poverty in Advanced Capitalist Democracies.” American Sociological Review68:22–51.
58.
MouwTed. 2000. “Job Relocation and the Racial Gap in Unemployment in Detroit and Chicago, 1980 to 1990.” American Sociological Review65:730–53.
59.
NeumarkDavidWachterMichael L.1995. “Union Effects on Non-Union Wages: Evidence from Panel Data on Industries and Cities.” Industrial and Labor Relations Review49:20–38.
60.
NewmanKatherine S.1999. No Shame in My Game. New York: Russell Sage Foundation and Knopf.
61.
O’ConnorAlice. 2001. Poverty Knowledge. Princeton, NJ: Princeton University Press.
62.
PlasmanRobertRycxFrancis. 2001. “Collective Bargaining and Poverty: A Cross-National Perspective.” European Journal of Industrial Relations7:175–202.
63.
QuillianLincoln. 2003. “The Decline of Male Employment in Low-Income Black Neighborhoods.” Social Science Research32:220–50.
64.
Rabe-HeskethSophiaSkrondalAnders. 2008. Multilevel and Longitudinal Modeling Using Stata, 2nd ed.College Station, TX: Stata Press.
65.
RainwaterLeeSmeedingTimothy M.2004. Poor Kids in a Rich Country. New York: Russell Sage Foundation.
RosenfeldJake. 2006. “Desperate Measures: Strikes and Wages in Post-Accord America.” Social Forces85:235–65.
68.
SampsonRobert J.1987. “Urban Black Violence: The Effect of Male Joblessness and Family Disruption.” American Journal of Sociology93:348–82.
69.
TiendaMartaStierHaya. 1991. “Joblessness and Shiftlessness: Labor Force Activity in Chicago’s Inner City.” Pp. 135–54 in The Urban Underclass, edited by JencksC.PetersonP. E.Washington, DC: The Brookings Institution.
70.
TillyCharles. 1998. Durable Inequality. Berkeley: University of California Press.
71.
TopeDanielJacobsDavid. 2009. “The Politics of Union Decline: The Contingent Determinants of Union Recognition Elections and Victories.” American Sociological Review74:842–64.
72.
VisserJelle.2011. Database on Institutional Characteristics of Trade Unions, Wage Setting, State Intervention and Social Pacts, 1960–2010, Version 3.0.Amsterdam Institute for Advanced Labour Studies (AIAS), University of Amsterdam.
73.
VolschoThomas W.KellyNathan J.2012. “The Rise of the Super-Rich: Power Resources, Taxes, Financial Markets, and the Dynamics of the Top 1 Percent, 1949 to 2008.” American Sociological Review77:679–99.
74.
WaddoupsJeffrey C.2001. “Unionism and Poverty-Level Wages in the Service Sector: The Case of Nevada’s Hotel-Casino Industry.” Applied Economic Letters8:163–67.
75.
WallaceMichaelLeichtKevin T.RaffalovichLawrence E.1999. “Unions, Strikes, and Labor’s Share of Income: A Quarterly Analysis of the United States.” Social Science Research28:265–88.
76.
WalsworthScott. 2010. “Unions and Employment Growth: The Canadian Experience.” Industrial Relations49:142–56.
77.
WesternBruce. 1997. Between Class and Market. Princeton, NJ: Princeton University Press.
78.
WesternBruceRosenfeldJake. 2011. “Unions, Norms, and the Rise in American Earnings Inequality.” American Sociological Review76:513–37.
79.
WilkinsonRichardPickettKate. 2009. The Spirit Level. New York: Bloomsbury Press.
80.
WilsonWilliam Julius. 1996. When Work Disappears. New York: Norton.
81.
ZuberiDan. 2006. Differences That Matter. Ithaca, NY: Cornell University Press.
82.
ZylanYvonneSouleSarah. 2000. “Ending Welfare as We Know It (Again): Welfare State Retrenchment, 1989–1995.” Social Forces79:623–52.
Supplementary Material
Please find the following supplemental material available below.
For Open Access articles published under a Creative Commons License, all supplemental material carries the same license as the article it is associated with.
For non-Open Access articles published, all supplemental material carries a non-exclusive license, and permission requests for re-use of supplemental material or any part of supplemental material shall be sent directly to the copyright owner as specified in the copyright notice associated with the article.
