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The effect of unionism on fringe benefits

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Author Info
Richard B. Freeman

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Abstract

This study analyzes the impact of unionism on fringes paid to production workers, using data on individual establishments. It compares fringe expenditures in establishments having the same level of compensation per hour and finds that unionism raises the share of compensation allotted to fringes, particularly to pensions, vacation pay, and life, accident, and health insurance. In addition, since unionism also raises the straight-time wage rate, itself a prime determinant of expenditures on fringes, unionism has a very sizeable impact on total fringe expenditures, as well as on the fringe share of compensation. The union fringe effect exceeds, in percentage terms, the union wage effect and is sufficiently large to suggest that standard union wage studies understate the union effect on total compensation. The study also compares the fringe expenditures of production and non-production workers within the same establishment, controlling for within-establishment pay policies. The findings suggest that the presence of a union among production workers in an establishment may have a sizeable spillover effect on the fringes paid nonproduction workers in that establishment. (Abstract courtesy JSTOR.)

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Publisher Info
Article provided by ILR Review, ILR School, Cornell University in its journal ILR Review.

Volume (Year): 34 (1981)
Issue (Month): 4 (July)
Pages: 489-509
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Handle: RePEc:ilr:articl:v:34:y:1981:i:4:p:489-509

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  1. Henry S. Farber, 1982. "The Determination of the Union Status of Workers," NBER Working Papers 1006, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Kandice Kapinos, 2009. "On the Determinants of Defined Benefit Pension Plan Conversions," Journal of Economic Interaction and Coordination, Springer, vol. 30(2), pages 149-167, June. [Downloadable!] (restricted)
  3. Henry S. Farber, 2001. "Notes on the Economics of Labor Unions," Working Papers 831, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
  4. John W. Budd & Karen Mumford, . "Trade Unions and Family Friendly Policies in Britain," Working Papers 0302, Industrial Relations Center, University of Minnesota (Twin Cities Campus). [Downloadable!]
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  5. Masahiro Abe & Isao Ohashi, 2004. "Inter-Industry and Firm Size Effects on Wage Differentials and Efficiency Wages in Japan," Hi-Stat Discussion Paper Series d04-25, Institute of Economic Research, Hitotsubashi University. [Downloadable!]
  6. Kandice Kapinos, 2009. "On the Determinants of Defined Benefit Pension Plan Conversions," Journal of Labor Research, Springer, vol. 30(2), pages 149-167, June. [Downloadable!] (restricted)
  7. Kristjan-Olari Leping, 2007. "Racial Differences In Availability Of Fringe Benefits As An Explanation For The Unexplained Blackwhite Wage Gap For Males In Us," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 57, Faculty of Economics and Business Administration, University of Tartu (Estonia). [Downloadable!]
  8. Barbara L. Wolfe & Robert H. Haveman, 2002. "Social and nonmarket benefits from education in an advanced economy," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, issue Jun, pages 97-142. [Downloadable!]
  9. Dana Goldman & Neeraj Sood & Arleen Leibowitz, 2005. "Wage and Benefit Changes in Response to Rising Health Insurance Costs," NBER Working Papers 11063, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  10. David E. Bloom & Richard B. Freeman, 1992. "The Fall in Private Pension Coverage in the U.S," NBER Working Papers 3973, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  11. Barry T. Hirsch, 2006. "Wage Determination in the U.S. Airline Industry: Union Power under Product Market Constraints," IZA Discussion Papers 2384, Institute for the Study of Labor (IZA). [Downloadable!]
  12. Barry T. Hirsch & Edward J. Schumacher, . "Union Wages, Rents, and Skills in Health Care Labor Markets," Working Papers 9603, East Carolina University, Department of Economics. [Downloadable!]
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  13. Charles Brown & James L. Medoff, 1989. "The Employer Size-Wage Effect," NBER Working Papers 2870, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  14. Dana P. Goldman & Neeraj Sood & Arleen Leibowitz, 2003. "The Reallocation of Compensation in Response to Health Insurance Premium Increases," NBER Working Papers 9540, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  15. Robert Hutchens & Patrick Nolen, 2006. "Will The Real Family-Friendly Employer Please Stand Up: Who Permits Parents To Reduce Working Hours For Purposes of Childcare?," Economics Discussion Papers 622, University of Essex, Department of Economics. [Downloadable!]
  16. Thomas C. Buchmueller & John DiNardo, 2001. "Union Effects on Health Insurance Provision and Coverage in the United States," NBER Working Papers 8238, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  17. Asma Hyder & Barry Reilly, 2005. "The Public and Private Sector Pay Gap in Pakistan: A Quantile Regression Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 44(3), pages 271-306. [Downloadable!]
  18. Luojia Hu, 2000. "Who Gets Good Jobs? The Hiring Decisions and Compensation Structures of Large Firms," Working Papers 815, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
  19. Vanessa V Tinsley, 2003. "Firms and Layoffs: The Impact of Unionization on Involuntary Job Loss," Working Papers 03-09, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
  20. Teresa Ghilarducci & Michael Reich, 1998. "Training and Pensions: Substitutes or Complements?," Institute for Research on Labor and Employment, Working Paper Series 1002, Institute of Industrial Relations, UC Berkeley. [Downloadable!]
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