The Cost of a Decline in Unions

The abuses are real. But, as unions wane in American life, it’s also increasingly clear that they were doing a lot of good in sustaining middle class life — especially the private-sector unions that are now dwindling.

Most studies suggest that about one-fifth of the increase in economic inequality in America among men in recent decades is the result of the decline in unions. It may be more: A study in the American Sociological Review, using the broadest methodology, estimates that the decline of unions may account for one-third of the rise of inequality among men.

“To understand the rising inequality, you have to understand the devastation in the labor movement,” says Jake Rosenfeld, a labor expert at the University of Washington and the author of “What Unions No Longer Do.”

Take construction workers. A full-time construction worker earns about $10,000 less per year now than in 1973, in today’s dollars, according to Rosenfeld. One reason is probably that the proportion who are unionized has fallen in that period from more than 40 percent to just 14 percent.

“All the focus on labor’s flaws can distract us from the bigger picture,” Rosenfeld writes. “For generations now the labor movement has stood as the most prominent and effective voice for economic justice.”