Unionization decreases income inequality by disciplining employer power

Evidence

Had socialism taken root in America, perhaps the country would have adopted a kind of “social democratic capitalism” that combined a market-based economy with big state investments in public education and social-welfare programs. Perhaps workers’ wages would be considerably higher and CEO compensation considerably lower. Income inequality decreases when unionization increases, as a result of organized labor fighting for better pay for the rank and file and keeping employer power in check. — Nikole Hannah-Jones et al., The 1619 Project, 583

Categorization

• XREF: connects to: Union decline raises officers’ relative compensation — Ken-Hou Lin & Donald Tomaskovic-Devey, Financialization and U.S. Income…, 136; Union density raises both low-level wages and top executive compensation — Ken-Hou Lin & Donald Tomaskovic-Devey, Financialization and U.S. Income…, 139; Financialization drives earnings inequality nearly as much as declining unionization — Ken-Hou Lin & Donald Tomaskovic-Devey, Financialization and U.S. Income…, 164 (+8 more)