The Wealth Returns to a Unionized Career

The effects of labor unions on wage attainment are well documented. Yet few studies have connected union membership to household wealth accumulation. Synthesizing insights from life course sociology and power resources theory, research on the labor market benefits of union coverage, and expanded approaches to wealth measurement, this ongoing project develops a novel framework that accounts for cumulative career union coverage in the estimation of the wealth returns to union membership. Using data on a cohort of U.S. Baby Boomers from the National Longitudinal Survey of Youth-1979 Cohort, I find that the wealth returns to unionized careers by midlife are substantial, particularly once the value of defined benefit pensions and social security wealth is taken into account, and that unionized careers reduce the college/non-college wealth gap and build wealth for all racial-ethnic groups. Higher cumulative lifetime earnings, enhanced job security, and greater access to employer-provided benefits partially account for the wealth returns to unionized careers. Results suggest that prior research underestimates the consequences of union decline for U.S. inequality by neglecting the wealth returns to unionized careers.