International migration, deindustrialization and union decline in 16 affluent OECD countries, 1962-1997

This article, using unbalanced panel data on 16 affluent OECD countries, tests the effects of diverse aspects of globalization and deindustrialization on unionization trends. In contrast to the recent studies focusing on the conditional role of labor market institutions, this study underlines the role of two structural factors in transforming occupational structures and ethnic composition of labor force: deindustrialization and international labor mobility across borders. The results lend substantial credence to my argument that, while deindustrialization has driven dramatic declines in union density by shrinking employment in traditionally highly unionized manufacturing sector, international migration negatively affects unionization by increasing competitions and heterogeneity between low-skilled native and immigrant workers. The empirical findings raise the question of how trade unions can build solidarity between native and immigrant workers.