The effect of union coverage on workers’ economic security and resilience to shocks

Labor unions have been widely documented as powerful institutions for workers
seeking better compensation and working conditions in their employment. However, there has been relatively little research on whether the benefits that come with
union coverage can displace the need for public assistance. In this paper I review
the literature on unions, social services, and economic downturns and conduct my
own analysis to investigate the differential use of social services among unionized
and non-unionized workers. If unions do serve as close substitutes for public assistance programs, then workers in unions should participate in these programs at
much lower rates and be more resilient to economic shocks than their non-union
counterparts. After controlling for covariates, I find that union coverage is significantly associated with higher wages, lower poverty rates, and lower participation
rates in public assistance programs. Moreover, workers covered by union contracts
were also better protected against the 2020 economic shock of the coronavirus pandemic, as they were more likely to receive additional compensation for disrupted
work schedules.