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The Effect of unions on wage inequality in the U.S. labor market

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Author Info
David Card

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Abstract

This study uses Current Population Survey micro data for 1973-74 and 1993 to evaluate the effect of changing union membership on trends in male and female wage inequality. Unionization rates of men fell between the two sample periods, with bigger declines among lower skill groups. These trends account for 15-20% of the rise in male wage inequality. Union membership rates of low-wage women also declined, while unionization increased among higher-wage women. On balance, shifting unionization accounts for very little of the rise in female wage inequality. Economy-wide trends in unionization mask a sharp divergence between the private sector, where unionism was declining, and the public sector, where it was rising. Comparisons across sectors suggest that unionization substantially slowed the growth in wage inequality in the public sector. (Author's abstract.)

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

Volume (Year): 54 (2001)
Issue (Month): 2 (January)
Pages: 296-315
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Handle: RePEc:ilr:articl:v:54:y:2001:i:2:p:296-315

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  1. Daniele Checchi & Jelle Visser & Herman G. van de Werfhorst, 2007. "Inequality and Union Membership: The Impact of Relative Earnings Position and Inequality Attitudes," IZA Discussion Papers 2691, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Rafael Gómez & Pablo Hernández de Cos, 2006. "The importance of being mature: the effect of demographic maturation on global per-capita income," Banco de España Occasional Papers 0604, Banco de España. [Downloadable!]
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This page was last updated on 2009-12-14.


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