Why So Unhappy? The Effects of Unionization on Job Satisfaction

Using linked employer–employee data we investigate the job satisfaction effect of union membership in Britain. We develop a model that simultaneously controls for the determinants of individual membership status and for the selection of employees into occupations according to union coverage. We find a negative association between membership and satisfaction. However, having accounted for selection effects, we find that the negative association is confined to non‐covered employees. This is consistent with ‘voice’ effects, whereby non‐covered members voice dissatisfaction to achieve union goals, and with the possibility that membership increases preferences for collective bargaining, thus lowering members’ satisfaction in non‐covered environments.