Closed Shops and Relative Pay: Institutional Arrangements or High Density?
AbstractEmployees in workplaces with a closed shop get paid more than their counterparts in comparable workplaces without a closed shop. Is this pay differential a consequence of high union density or the institution of the closed ship itself? The authors' results indicate that a post-entry closed shop adds no extra pay differential over and above that achieved by employees in workplaces with high union density but no closed shop. By contrast the preentry closed shop--where the union normally controls the labor supply and has the potential to impose substantial costs on the employer by striking--roughly doubles the premium gained by high density alone. The implications of their results for the likely impact on union wage premia of recent legal changes outlawing the closed shop are discussed. Copyright 1992 by Blackwell Publishing Ltd
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Bibliographic InfoArticle provided by Department of Economics, University of Oxford in its journal Oxford Bulletin of Economics & Statistics.
Volume (Year): 54 (1992)
Issue (Month): 4 (November)
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- David G. Blanchflower, 1997.
"Changes Over Time in Union Relative Wage Effects in Great Britain and the United States,"
NBER Working Papers
6100, National Bureau of Economic Research, Inc.
- Blanchflower, D-G, 1997. "Changes Over Time in Union Relative Wage Effects in Great Britain and the United States," Papers 15, Centre for Economic Performance & Institute of Economics.
- John Pencavel, 2003.
"The Surprising Retreat of Union Britain,"
NBER Working Papers
9564, National Bureau of Economic Research, Inc.
- David Metcalf, 1993. "Transformation of British Industrial Relations? Institutions, Conduct and Outcomes 1980-1990," CEP Discussion Papers dp0151, Centre for Economic Performance, LSE.
- N Millward, 1993. "Uses of the Workplace Industrial Relations Surveys by British Labour Economists," CEP Discussion Papers dp0145, Centre for Economic Performance, LSE.
- repec:ese:iserwp:2001-08 is not listed on IDEAS
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