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Unionization and the Pattern of Nonunion Wages: Evidence for the UK

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  • Clive R. Belfield
  • John S. Heywood

Abstract

This paper presents the first examination of the effect of unionisation on the distribution of nonunion wages in the UK. We test a hypothesis that has received considerable attention in the US: that the threat of unionisation leads nonunion firms to increase the earnings of their lowest paid workers, so compressing their internal wage distribution. In aggregate we find little support for this hypothesis in the UK and suggest that the supportive evidence from the US may be a function of the absence of suitable linked employer‐employee data.

Suggested Citation

  • Clive R. Belfield & John S. Heywood, 2001. "Unionization and the Pattern of Nonunion Wages: Evidence for the UK," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 63(5), pages 577-598, December.
    • Handle: RePEc:bla:obuest:v:63:y:2001:i:5:p:577-598
    DOI: 10.1111/1468-0084.00236
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    Cited by:

    1. Salvatori, Andrea, 2012. "Union threat and non-union employment: A natural experiment on the use of temporary employment in British firms," Labour Economics, Elsevier, vol. 19(6), pages 944-956.
    2. Clive Belfield, 2005. "Workforce gender effects on firm performance and workers' pay: evidence for the UK," Applied Economics, Taylor & Francis Journals, vol. 37(8), pages 885-891.
    3. Basil Dalamagas & Stelios Kotsios, 2012. "A macroeconomic approach to the income-tax work-effort relationship," International Review of Applied Economics, Taylor & Francis Journals, vol. 26(3), pages 349-366, February.

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