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Trade Unions, Collective Voice and Fringe Benefits

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  • PAUL MILLER
  • CHARLES MULVEY

Abstract

The exit/voice model of the labour market predicts that unionized workers will enjoy a greater level of fringe benefits, both absolutely and as a share of total compensation, than non‐unionists. This is because unions can, through the medium of collective voice, communicate to management a picture of the preferences of the median worker. In non‐union settings, however, management responds to the perceived preferences of the young, mobile workers at the hiring margin and these typically place a low priority on fringe benefits relative to money wages. Using data from the A ustralian Longitudinal Survey it is found that the hypothesis is supported by the evidence for Australia.

Suggested Citation

  • Paul Miller & Charles Mulvey, 1992. "Trade Unions, Collective Voice and Fringe Benefits," The Economic Record, The Economic Society of Australia, vol. 68(2), pages 125-141, June.
    • Handle: RePEc:bla:ecorec:v:68:y:1992:i:2:p:125-141
    DOI: 10.1111/j.1475-4932.1992.tb01758.x
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    References listed on IDEAS

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    1. Miller, Paul W, 1990. "Trade Unions and Job Satisfaction," Australian Economic Papers, Wiley Blackwell, vol. 29(55), pages 226-248, December.
    2. Richard B. Freeman, 1981. "The Effect of Unionism on Fringe Benefits," ILR Review, Cornell University, ILR School, vol. 34(4), pages 489-509, July.
    3. P.W. Miller & S. Rummery, 1989. "Unionism and the Structure of Male Wages in the Youth Labour Market," Economics Discussion / Working Papers 89-08, The University of Western Australia, Department of Economics.
    4. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    5. Blanchflower, D. & Oswald, A., 1990. "Working Internationally," Papers 371, London School of Economics - Centre for Labour Economics.
    6. Miller, Paul & Volker, Paul, 1987. "The Youth Labour Market In Australia," The Economic Record, The Economic Society of Australia, vol. 63(182), pages 203-219, September.
    7. Paul Miller & Paul Volker, 1987. "The Youth Labour Market in Australia," The Economic Record, The Economic Society of Australia, vol. 63(3), pages 203-219, September.
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    Cited by:

    1. Paul Miller & Charles Mulvey, 1993. "What Do Australian Unions Do?," The Economic Record, The Economic Society of Australia, vol. 69(3), pages 315-342, September.
    2. Paul Miller & Paul Miller & Charles Mulvey, 1996. "Unions, Firm Size and Wages," The Economic Record, The Economic Society of Australia, vol. 72(217), pages 138-151, June.
    3. Yong-Woo Lee, 2022. "Trade Unions and Workers’ Life Satisfaction in South Korea," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 17(1), pages 277-298, February.
    4. Feld, Lars P., 1997. "Exit, voice and income taxes: The loyalty of voters," European Journal of Political Economy, Elsevier, vol. 13(3), pages 455-478, September.
    5. Jorge Davalos & Monica Puoma Lambon-Quayefio & Samuel B. Manu, 2017. "An empirical assessment of the union facilitation effect in the Ghanaian labor market Author-Name: Nkechi S. Owoo," Working Papers PMMA 2017-08, PEP-PMMA.

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