Research: Membership in trade unions increases the wealth of US households by 1.7 times

Unionized US households have 1.7 times the median wealth of non-unionized households, according to research by the Center for American Progress, which is based on an analysis of 2022 data from the Federal Reserve’s Consumer Survey. Incorporated households are more likely to own a home, and their pension provisions are higher than those of unincorporated households.

The data shows that the median value of the household holdings of trade union members was 338.4 thousand dollars, compared to 199.5 thousand dollars for non-unionized households. Unionized workers have higher median wealth at all levels of education. For example, among families who did not graduate from high school, the median wealth value stands at $22.8 thousand if they are not union members, and $69 thousand if they are union members. Among high school graduates, union membership raises the median wealth from $95.4 thousand to $181.3 thousand. Among those who attended college but did not complete a college degree, union membership increases the median wealth from $128.4 thousand to $338.5 thousand, and among those with a college degree or higher, it increases the median wealth from $476.1 thousand to $533.4 thousand.

The data shows that membership in a trade union narrows the gaps between households from the blue collar class and households with college graduates and academic education. The median wealth of non-unionized working-class households is about 21% that of the educated, while the median wealth of unionized blue-collar households is 49% of that of unionized college-educated households.

Organizing in labor unions also narrows the racial wealth gap in the US. The median wealth of unionized white households is 37% higher than their non-union counterparts, while among non-white households, union membership increases median wealth by 167%-228 %.

Among black families, union membership increases median wealth from $61.5 thousand to $164.6 thousand; among Hispanic families from 57.8 thousand dollars to 189.8 thousand dollars; and among other minorities from 173 thousand dollars to 527.3 thousand dollars. Among white families, union membership increases the median wealth from $289.4 thousand to $397.7 thousand.