Seniority, Earnings and Unions
AbstractThis 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 InfoArticle provided by London School of Economics and Political Science in its journal Economica.
Volume (Year): 63 (1996)
Issue (Month): 252 (November)
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Other versions of this item:
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
- J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
- J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
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- Flabbi, Luca & Ichino, Andrea, 2001.
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- 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.
- 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.
- 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.
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