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Quantile Regression Estimates of the Union Wage Effect for Great Britain

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  • N. C. O'Leary
  • P. D. Murphy
  • D. H. Blackaby

Abstract

This paper assesses the impact that trade unions have on the wage rates paid to workers in Great Britain using data from the Labour Force Survey. By employing a quantile regression model, this analysis is conducted over the entire range of the earnings distribution, where it is found that unions have more scope for increasing the earnings of workers on the very lowest of wage rates. Asymmetries in the effects of union membership and union coverage are also found to exist for employees across all earnings levels.

Suggested Citation

  • N. C. O'Leary & P. D. Murphy & D. H. Blackaby, 2004. "Quantile Regression Estimates of the Union Wage Effect for Great Britain," Manchester School, University of Manchester, vol. 72(4), pages 497-514, July.
    • Handle: RePEc:bla:manchs:v:72:y:2004:i:4:p:497-514
    DOI: 10.1111/j.1467-9957.2004.00405.x
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    References listed on IDEAS

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    1. Martyn J. Andrews & David N. F. Bell & Richard Upward, 1998. "Union Coverage Differentials. Some Estimates for Britain Using the New Earnings Survey Panel Dataset," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 60(1), pages 47-47, February.
    2. Andrews, Martyn J. & Stewart, Mark B. & Swaffield, Joanna K. & Upward, Richard, 1998. "The estimation of union wage differentials and the impact of methodological choices," Labour Economics, Elsevier, vol. 5(4), pages 449-474, December.
    3. Blackaby, D. H. & Murphy, P. D. & Sloane, P. J., 1991. "Union membership, collective bargaining coverage and the trade union mark-up for Britain," Economics Letters, Elsevier, vol. 36(2), pages 203-208, June.
    4. N C OLeary & P D Murphy & D H Blackaby, 2003. "The Effect of Unionisation on Wages in Great Britain: Estimates from the Labour Force Survey," Economic Issues Journal Articles, Economic Issues, vol. 8(1), pages 33-46, March.
    5. Moshe Buchinsky, 1998. "Recent Advances in Quantile Regression Models: A Practical Guideline for Empirical Research," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 88-126.
    6. Murphy, P D & Sloane, Peter J & Blackaby, D H, 1992. "The Effects of Trade Unions on the Distribution of Earnings: A Sample Selectivity Approach," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 54(4), pages 517-542, November.
    7. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-442, June.
    8. Shah, Anup R, 1984. "Job Attributes and the Size of the Union-Non-union Wage Differential," Economica, London School of Economics and Political Science, vol. 51(204), pages 437-446, November.
    9. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    10. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
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    Cited by:

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    2. Manquilef-Bächler, Alejandra A. & Arulampalam, Wiji & Smith, Jennifer C., 2009. "Differences in Decline: Quantile Regression Analysis of Union Wage Differentials in the United Kingdom, 1991-2003," IZA Discussion Papers 4138, Institute of Labor Economics (IZA).

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