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Returns to seniority in union and nonunion jobs: A new look at the evidence

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Author Info
Katharine G. Abraham
Henry S. Farber

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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.)

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

Volume (Year): 42 (1988)
Issue (Month): 1 (October)
Pages: 3-19
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Handle: RePEc:ilr:articl:v:42:y:1988:i:1:p:3-19

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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. Blair, Douglas H & Crawford, David L, 1984. "Labor Union Objectives and Collective Bargaining," The Quarterly Journal of Economics, MIT Press, vol. 99(3), pages 547-66, August. [Downloadable!] (restricted)
  2. Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March. [Downloadable!] (restricted)
  3. Farrell Bloch & Mark S. Kuskin, 1978. "Wage determination in the union and nonunion sectors," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 31(2), pages 183-192, January.
  4. Katharine G. Abraham & James L. Medoff, 1985. "Length of service and promotions in union and nonunion work groups," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 38(3), pages 408-420, April.
  5. Altonji, Joseph G & Shakotko, Robert A, 1987. "Do Wages Rise with Job Seniority?," Review of Economic Studies, Blackwell Publishing, vol. 54(3), pages 437-59, July. [Downloadable!] (restricted)
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  6. Thomas Hyclak, 1979. "The effect of unions on earnings inequality in local labor markets," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 33(1), pages 77-84, October.
  7. Richard B. Freeman, 1982. "Union wage practices and wage dispersion within establishments," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 36(1), pages 3-21, October.
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  8. Lancaster, Tony, 1979. "Econometric Methods for the Duration of Unemployment," Econometrica, Econometric Society, vol. 47(4), pages 939-56, July. [Downloadable!] (restricted)
  9. Barry T. Hirsch, 1982. "The interindustry structure of unionism, earnings, and earnings dispersion," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 36(1), pages 22-39, October.
  10. 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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  11. Hall, Robert E, 1982. "The Importance of Lifetime Jobs in the U.S. Economy," American Economic Review, American Economic Association, vol. 72(4), pages 716-24, September. [Downloadable!] (restricted)
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Cited by:
(explanations, 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. 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. [Downloadable!]
  2. 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. [Downloadable!] (restricted)
  3. 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.. [Downloadable!]
    Other versions:
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