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What Reduces Income Inequality? Unions!

Unions help reduce income inequality and help both union and non-union workers earn higher wages.
Graphic art and text reading The Union Boom
Published: March 21, 2024

Laurel Smith-Doerr, a professor and organizational sociologist at the University of Massachusetts Amherst, studied the pay gap at her own university with mostly satisfying results: Female professors at the top of the pay scale make as much or even more than men in similar positions—which is not usually the case in higher education.

“That’s because the faculty union, the Massachusetts Society of Professors (MSP), spent decades working with the university administration at the bargaining table to support equal pay for women and policies that help them stay in their jobs—like paid leave and subsidized child care,” Smith-Doerr explains.

Laurel Smith-Doerr
Laurel Smith-Doerr

About 25 years ago, MSP successfully bargained for equity pay raises, which benefited professors of color as well as the women teaching there, who were often paid less than their White, male colleagues. Those negotiations left a legacy of fairer salaries for all who came after.

Unions are key to higher wages

Now, a first-of-its-kind report by the U.S. Department of the Treasury confirms that unions help reduce income inequality and help both union and non-union workers earn higher wages.

Prompted by the Biden administration, the Treasury Department set out to answer two key questions: Do policies that strengthen unions actually help the middle class? And do unions help the economy as a whole?

The answer to both questions is yes.

The Treasury report confirms that unions help solve problems that plague the middle class, such as stagnant wages and reduced generational mobility. When the middle class has well-paying, stable jobs, the economy is less fragile.

The researchers also state that non-union workers benefit from union bargaining wins. Non-union employers often increase wages to keep employees from leaving for union jobs.

All workers deserve a voice

President Joe Biden has called on Congress to pass the Public Service Freedom to Negotiate Act, which would ensure that all public employees—including educators—can come together through their unions to negotiate salaries, benefits, and working conditions.

NEA affiliates are working to elect leaders who support unions and to repeal state laws that take away workers’ rights.

Unions raise the wages of their members by 10–15 percent.
Unions reduce race and gender based wage gaps.
By reducing income inequality, unions contribute to overall economic growth and resilience.
Unions are enjoying their highest public approval rating in more than 50 years.
A study of 4,000 workers found that 52% of non-union workers want to be in a union.
But only 6% of private sector workers are union members. That gap shows the need for policies that better protect workers’ right to unionize.

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