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The Effect of Unions on the Structure of Wages: A Longitudinal Analysis

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Card, David

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Abstract

This paper studies the effects of unions on the structure of wages using an estimation technique that accounts for misclassification errors in reported union status and potential correlations between union status and unobserved productivity. The model is estimated separately for five skill groups using a panel data set formed from the U.S. Current Population Survey. The results suggest that unions raise wages more for workers with lower levels of observed skills. Union workers are positively selected from the population of workers with lower levels of observed skill and negatively selected from the population with higher observed skills. Copyright 1996 by The Econometric Society.

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Publisher Info
Article provided by Econometric Society in its journal Econometrica.

Volume (Year): 64 (1996)
Issue (Month): 4 (July)
Pages: 957-79
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Handle: RePEc:ecm:emetrp:v:64:y:1996:i:4:p:957-79

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Gary Chamberlain, 1982. "Panel Data," NBER Working Papers 0913, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Mellow, Wesley & Sider, Hal, 1983. "Accuracy of Response in Labor Market Surveys: Evidence and Implications," Journal of Labor Economics, University of Chicago Press, vol. 1(4), pages 331-44, October. [Downloadable!] (restricted)
  3. Richard B. Freeman, 1980. "Unionism and the dispersion of wages," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 34(1), pages 3-23, October.
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  4. John M. Abowd & Henry S. Farber, 1982. "Job queues and the union status of workers," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 35(3), pages 354-367, April.
  5. George E. Johnson & Kenwood C. Youmans, 1971. "Union relative wage effects by age and education," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 24(2), pages 171-179, January.
  6. Robinson, Chris, 1989. "The Joint Determination of Union Status and Union Wage Effects: Some Tests of Alternative Models," Journal of Political Economy, University of Chicago Press, vol. 97(3), pages 639-67, June. [Downloadable!] (restricted)
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This page was last updated on 2009-11-12.

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