Unions hinder income redistribution by raising efficiency costs and generating unemployment.
The study looked at how labor unions affect income taxes and redistribution. Unions can make income taxes and unemployment benefits lower, but they can also cause involuntary unemployment. The research found that unions are only good for society if they represent low-income workers who get subsidies. Stronger unions lead to lower participation tax rates. However, the study showed that unions are not actually beneficial when income taxes are optimized.