Typical union households have 1.7 times the median wealth as their nonunion counterparts, according to a new Center for American Progress report that uses consumers’ personal finance statistics from 2022.

Labor unions have been effective in recent years in prodding employers to increase wages and benefits against a backdrop of wage stagnation and ballooning CEO compensation.

In addition to boosting wages, unions also have been effective in narrowing the racial wealth gap and income disparities between people with and without college degrees. Based on data from the Federal Reserve, union households have a median wealth of $338,482 compared with $199,948 for nonunion households, the report said. Union membership increased the median wealth for households of color by a range of 167% to 228%.

Unions are successful in increasing household wealth because they can negotiate wages en masse, ensure more job stability and bargain with employers for enhanced benefits like pension plans and health insurance, the report found. Thanks to pension plans, union members are more likely than nonunion workers to be able to retire and own their own home.

The economic success of union members has inspired workers in the private sector to unionize as white-collar jobs lose stability.

March 21