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Unions, Firm Size and Wages

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  • Miller, Paul
  • Mulvey, Charles

Abstract

It is well established in the literature that Australian unions raise their members' wages relative to those of otherwise comparable nonmembers by some amount in the range 7-15 percent. However, it is also known that firm size is positively associated with union density and that firm size is positively associated with relative wages independent of unionism. Using a new, large and rich set of data from the Training and Education Survey 1993, the authors show that the estimated union relative wage effect is largely comprised of bias due to the omission of firm size as a variable in the wage equations usually estimated. Copyright 1996 by The Economic Society of Australia.

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Bibliographic Info

Article provided by The Economic Society of Australia in its journal The Economic Record.

Volume (Year): 72 (1996)
Issue (Month): 217 (June)
Pages: 138-53

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Handle: RePEc:bla:ecorec:v:72:y:1996:i:217:p:138-53

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Cited by:
  1. Elizabeth Webster & Yi-Ping Tseng, 2000. "The Determinants of Relative Wage Change in Australia," Melbourne Institute Working Paper Series wp2000n23, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  2. Lixin Cai & Amy Y. C. Liu, 2011. "Public–Private Sector Wage Gap in Australia: Variation along the Distribution," British Journal of Industrial Relations, London School of Economics, vol. 49(2), pages 362-390, 06.
  3. Raul Eamets & Epp Kalaste, 2004. "The Lack of Wage Setting Power of Estonian Trade Unions?," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 5(1), pages 44-60, December.
  4. Clive Belfield & Xiangdong Wei, 2004. "Employer size-wage effects: evidence from matched employer-employee survey data in the UK," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 36(3), pages 185-193.
  5. Virén , Matti, 2005. "Why do capital intensive companies pay higher wages?," Research Discussion Papers 5/2005, Bank of Finland.
  6. Rudy Fichtenbaum, 2006. "Labour market segmentation and union wage gaps," Review of Social Economy, Taylor & Francis Journals, Taylor & Francis Journals, vol. 64(3), pages 387-420.
  7. Samantha Farmakis‐Gamboni & David Prentice, 2011. "When Does Reducing Union Bargaining Power Increase Productivity? Evidence from the Workplace Relations Act," The Economic Record, The Economic Society of Australia, The Economic Society of Australia, vol. 87(279), pages 603-616, December.
  8. Lixin Cai & Amy Y.C. Liu, 2008. "Union Wage Effects in Australia: Is There Variation along the Distribution?," The Economic Record, The Economic Society of Australia, The Economic Society of Australia, vol. 84(267), pages 496-510, December.
  9. Samantha Farmakis-Gamboni & David Prentice, 2007. "Does Reducing Union Bargaining Power Increase Productivity?," Working Papers, School of Economics, La Trobe University 2007.04, School of Economics, La Trobe University.
  10. Peter Siminski, 2013. "Are low-skill public sector workers really overpaid? A quasi-differenced panel data analysis," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 45(14), pages 1915-1929, May.
  11. Lixin Cai & C. Jeffrey Waddoups, 2009. "The Role of Unobserved Heterogeneity and On-the-Job Training in the Employer Size-Wage Effect: Evidence from Australia," Working Papers, University of Nevada, Las Vegas , Department of Economics 0915, University of Nevada, Las Vegas , Department of Economics.
  12. Wooden, Mark, 2001. "Union Wage Effects in the Presence of Enterprise Bargaining," The Economic Record, The Economic Society of Australia, The Economic Society of Australia, vol. 77(236), pages 1-18, March.
  13. Matti Viren, 2006. "Higher wages and capital intensity: a closer look," Discussion Papers, Aboa Centre for Economics 13, Aboa Centre for Economics.
  14. Seppo Kari & Ylä-Liedenpohja & Jouko, 2005. "Cost of Capital for Cross-border Investment: The Fallacy of Estonia as a Tax Haven," Discussion Papers, Government Institute for Economic Research Finland (VATT) 367, Government Institute for Economic Research Finland (VATT).
  15. Camilla Jensen, 2004. "Formal Integration: FDI and trade in Europe," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 5(1), pages 5-27, December.

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