Ronald Reagan and the politics of declining union organization

New union members in the United States are typically gained through work-place elections. We find that the annual number of union elections fell by 50 per cent in the early 1980s. A formal model indicates that declining union election activity may be due to an unfavourable political climate which raises the costs of unionization, even though the union win-rate remains unaffected. We relate the timing of declining election activity to the air-traffic controllers' strike of 1981, and the appointment of the Reagan Labor Board in 1983. Empirical analysis shows that the fall in election activity preceded these developments.