Despite these results, the number and percent
of persons in poverty declined over the decade.
In 1990, 13.5 percent of people were classified as
poor; by 1999, this number had declined to 11.9 per-
cent. The percentage reductions were particu-
larly noteworthy for African Americans (from
31.9 to 23.6 percent) and Hispanics (from 28.1 to
22.7 percent).
Membership in labor unions was an important el-
ement in wage and employment conditions. In 1990,
16.7 million workers were union members; by 2000,
this number had declined slightly to 16.3 million.
Union membership in government employment
rose from 6.5 million to 7.1 million. An increase in
the number of schoolteachers was an important con-
tributor. Union membership declined in private--
sector employment, from 10.3 million to 9.1 million,
decreasing the unionized percentage from 11 to
9 percent in the private sector. An important factor
in this decline was the decrease in employment in
manufacturing, a location of traditionally strong
unions. Unionized employment, however, fell more
than nonunionized employment, as industries such
as automobile production became more heavily
located in traditional nonunion areas.
Many of the differentials in wage levels compar-
ing union and nonunion workers, male and female
workers, and black and white workers arise because
the different categories of workers differ in their oc-
cupations and sector employment. On average, how-
ever, union members earned about 25 percent more
than nonunion workers in 1990, declining to 20 per-
cent in 1999. Among union members, men’s wage
rates exceeded those of women by 12 percent, cer-
tainly reflecting different jobs and not different
rates for the same job. For nonunion workers, men’s
wage rates exceeded those of women by 37 percent
in 1990, declining to 33 percent in 1999.
Impact During the 1990’s, the demand for labor
was strong and employment grew sufficiently to ab-
sorb the rising population. The top fifth of income re-
cipients increased their share of total income, but this
group did not necessarily comprise the same people
in 1999 as in 1990. Poverty declined over the decade.
Further Reading
Ehrenberg, Ronald G., and Robert S. Smith.Mod-
ern Labor Economics. 8th ed. New York: Pearson/
Addison Wesley, 2003. This college-level text puts
wages and employment into historical and analyt-
ical perspective. Includes chapters on pay and
productivity, discrimination, and the influence of
unions.
Hirsch, Barry T. “Sluggish Institutions in a Dynamic
World: Can Unions and Industrial Competition
Coexist?”Journal of Economic Perspectives22, no. 1
(Winter, 2008): 153-176. The author’s short an-
swer to the question posed by the title is not very
well. A good historical review of the extent and in-
fluence of unionization.
“Symposium on Discrimination in Product, Credit
and Labor Markets.”Journal of Economic Perspec-
tives12, no. 2 (Spring, 1998): 63-126. William
Darity and Patrick Mason present evidence of
persisting discrimination, while James Heckman
takes a skeptical view.
Paul B. TrescottSee also Business and the economy in the United
States; Employment in the United States; General
Motors strike of 1998; Immigration to the United
States; Income and wages in Canada; Minimum wage
increases. Independent films
Definition Films made outside the Hollywood
systemThe great popularity of independent films in the 1990’s es-
tablished them as an alternative to Hollywood films.The Nineties in America Independent films 449
Share of Income Going to Each
Quintile, 1990 and 1999Quintile 1990 1999
Lowest fifth 3.8% 3.6%
Second fifth 9.6% 8.9%
Third fifth 15.9% 14.9%
Fourth fifth 24.0% 23.2%
Highest fifth 46.6% 49.4%Source: Statistical Abstract of the United States, 2008, p. 450.