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Seniority, Earnings and Unions

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  • Booth, Alison L
  • Frank, Jeff

Abstract

This paper uses a new data source to investigate whether wages rise more with seniority in unionized or nonunionized workplaces. The data distinguish establishments that have incremental wage scales with automatic progression by seniority. For unions with seniority scales, the union wage differential is increasing with seniority. This is not the case for unions without seniority scales. Taking account of this heterogeneity, the authors are able to reconcile previous paradoxical empirical findings. The results provide support for discriminating monopoly models of the trade union and have important efficiency and distributional implications. Copyright 1996 by The London School of Economics and Political Science.

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Bibliographic Info

Article provided by London School of Economics and Political Science in its journal Economica.

Volume (Year): 63 (1996)
Issue (Month): 252 (November)
Pages: 673-86

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Handle: RePEc:bla:econom:v:63:y:1996:i:252:p:673-86

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Cited by:
  1. Williams, Nicolas, 2009. "Seniority, experience, and wages in the UK," Labour Economics, Elsevier, vol. 16(3), pages 272-283, June.
  2. Alison L. Booth & Marco Francesconi & Jeff Frank, 2002. "Temporary Jobs: Stepping Stones Or Dead Ends?," Economic Journal, Royal Economic Society, vol. 112(480), pages F189-F213, June.
  3. Zwick, Thomas, 2011. "Seniority wages and establishment characteristics," Labour Economics, Elsevier, vol. 18(6), pages 853-861.
  4. Booth, Alison L. & Francesconi, Marco & Frank, Jeff, 2003. "A sticky floors model of promotion, pay, and gender," European Economic Review, Elsevier, vol. 47(2), pages 295-322, April.
  5. Sarah Brown & John G. Sessions, . "Education, Earnings, and Fixed-Term Contracts," Discussion Papers in Public Sector Economics 01/5, Department of Economics, University of Leicester.
  6. repec:ese:iserwp:2000-35 is not listed on IDEAS
  7. Nicholas Lawson, 2011. "Is Collective Bargaining Pareto Efficient? A Survey of the Literature," Journal of Labor Research, Springer, vol. 32(3), pages 282-304, September.
  8. Flabbi, Luca & Ichino, Andrea, 2001. "Productivity, seniority and wages: new evidence from personnel data," Labour Economics, Elsevier, vol. 8(3), pages 359-387, June.
  9. repec:ese:iserwp:2000-13 is not listed on IDEAS
  10. Paul Hek & Daniel Vuuren, 2011. "Are older workers overpaid? A literature review," International Tax and Public Finance, Springer, vol. 18(4), pages 436-460, August.

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