Returns to seniority in union and nonunion jobs: A new look at the evidence
Abstract
In cross-sectional data, the positive association between seniority and earnings is typically much stronger for nonunion workers than for union workers, a finding that seems inconsistent with the generalization that seniority is more important in the union sector than in the nonunion sector. The authors of this paper show that standard estimates of the return to seniority are likely to be biased upward due to unmeasured worker heterogeneity, job heterogeneity, or both, and they argue that this bias is likely to be larger in the nonunion sector than in the union sector. When they correct for this problem in analyzing data on male blue-collar workers for the years 1968-80, they find a larger return to seniority in the union sector than in the nonunion sector. (Abstract courtesy JSTOR.)Download Info
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Bibliographic Info
Article provided by ILR Review, Cornell University, ILR School in its journal ILR Review.
Volume (Year): 42 (1988)
Issue (Month): 1 (October)
Pages: 3-19
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Related research
Keywords:Other versions of this item:
- Katharine G. Abraham & Henry S. Farber, 1989. "Returns to Seniority in Union and Nonunion Jobs: A New Look at the Evidence," NBER Working Papers 2368, National Bureau of Economic Research, Inc.
References
References listed on IDEASPlease 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.:
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Kuhn, Peter & Robert, Jacques, 1989.
"Seniority and Distribution in a Two-Worker Trade Union,"
The Quarterly Journal of Economics,
MIT Press, vol. 104(3), pages 485-505, August.
- Peter Kuhn & Jacques Robert, 1988. "Seniority and Distribution in a Two-Worker Trade Union," Working Papers 615, Princeton University, Department of Economics, Industrial Relations Section..
- Reich, Michael, 2012. "The Rising Strength of Management, High Unemployment and Slow Growth: Revisiting Okun’s Law," Institute for Research on Labor and Employment, Working Paper Series qt8sc8s1z1, Institute of Industrial Relations, UC Berkeley.
- Givord, Pauline & Maurin, Eric, 2003. "Job Tenure, Wages and Technology: A Reassessment Using Matched Worker-Firm Panel Data," CEPR Discussion Papers 4147, C.E.P.R. Discussion Papers.
- Carneiro, Anabela & Portugal, Pedro, 2006.
"Earnings Losses of Displaced Workers: Evidence from a Matched Employer-Employee Data Set,"
IZA Discussion Papers
2289, Institute for the Study of Labor (IZA).
- Anabela Carneiro & Pedro Portugal, 2006. "Earnings Losses of Displaced Workers: Evidence from a Matched Employer-Employee Data Set," Working Papers w200614, Banco de Portugal, Economics and Research Department.
- Anabela Carneiro & Pedro Portugal, 2006. "Earnings Losses of Displaced Workers: Evidence from a Matched Employer-employee Data Set," CEF.UP Working Papers 0607, Universidade do Porto, Faculdade de Economia do Porto.
- Brown, Byron W. & Woodbury, Stephen A., 1998.
"Seniority, external labor markets, and faculty pay,"
The Quarterly Review of Economics and Finance,
Elsevier, vol. 38(4), pages 771-798.
- Byron W. Brown & Stephen A. Woodbury, 1995. "Seniority, External Labor Markets, and Faculty Pay," Upjohn Working Papers and Journal Articles 95-37, W.E. Upjohn Institute for Employment Research.
- Don Mar & Paul Ong, 1994. "Race and rehiring in the high-tech industry," The Review of Black Political Economy, Springer, vol. 22(3), pages 43-54, March.
- Daniel van Vuuren & Paul de Hek, 2010.
"Are older workers overpaid? A literature review,"
CPB Discussion Paper
165, CPB Netherlands Bureau for Economic Policy Analysis.
- Paul Hek & Daniel Vuuren, 2011. "Are older workers overpaid? A literature review," International Tax and Public Finance, Springer, vol. 18(4), pages 436-460, August.
- Nicolas Williams, 2004.
"Seniority, Experience, and Wages in the UK,"
University of Cincinnati, Economics Working Papers Series
2004-06, University of Cincinnati, Department of Economics.
- Williams, Nicolas, 2009. "Seniority, experience, and wages in the UK," Labour Economics, Elsevier, vol. 16(3), pages 272-283, June.
- Devereux, Paul J. & Hart, Robert A. & Roberts, J. Elizabeth, 2013.
"Job Spells, Employer Spells, and Wage Returns to Tenure,"
IZA Discussion Papers
7384, Institute for the Study of Labor (IZA).
- Devereux, Paul J & Hart, Robert A & Roberts, J Elizabeth, 2013. "Job spells, employer spells, and wage returns to tenure," Stirling Economics Discussion Papers 2013-01, University of Stirling, Division of Economics.
- Lorenz, Wilhelm & Wagner, Joachim, 1989. "Tätigkeit im erlernten Beruf, Betriebszugehörigkeitsdauer und Arbeitseinkommen : eine ökonometrische Untersuchung mit Individualdaten für das Bundesland Bremen und ein metallverarbeitendes Unterne," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 22(4), pages 568-575.
- Lori G. Kletzer, 1998. "Job Displacement," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 115-136, Winter.
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