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Changes in the union wage premium by industry

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  • Bernt Bratsberg
  • James F. Ragan
  • Jr

Abstract

Relying on CPS data, the authors estimate the union wage premium--the amount by which wages of union workers exceeded those of nonunion workers in the same industry conditional on worker characteristics--for 32 industries over the period 1971-99. The dispersion of union premiums across industries narrowed over time as high premiums tended to fall and low premiums to rise. At the aggregate level, the premium drifted lower. When the authors model the union premium as a function of cyclical and structural variables and unmeasured industry characteristics, they find that Cost-of-Living-Adjustment (COLA) clauses reduced the responsiveness of the union premium to economic conditions and that increases in import penetration were strongly associated with rising union premiums. The effect of deregulation was mixed. (Author's abstract.)

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Bibliographic Info

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

Volume (Year): 56 (2002)
Issue (Month): 1 (October)
Pages: 65-83

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Handle: RePEc:ilr:articl:v:56:y:2002:i:1:p:65-83

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Cited by:
  1. Bernt Bratsberg & Oddbjorn Raaum, 2010. "Immigration and Wages: Evidence from Construction," CReAM Discussion Paper Series 1006, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  2. Jan Askildsen & Øivind Nilsen, 2010. "Markup cyclicality and input factor adjustments," Empirical Economics, Springer, vol. 38(2), pages 409-428, April.
  3. Hirsch, Barry & Schumacher, Edward J., 2003. "Match Bias in Wage Gap Estimates Due to Earnings Imputation," IZA Discussion Papers 783, Institute for the Study of Labor (IZA).
  4. Hirsch, Barry, 2010. "Unions, Dynamism, and Economic Performance," IZA Discussion Papers 5342, Institute for the Study of Labor (IZA).
  5. Helge Sanner, 2003. "Imperfect Goods and Labor Markets, and the Union Wage Gap," Volkswirtschaftliche Diskussionsbeiträge 55, Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät.
  6. De la Rica Goiricelaya, Sara & González de San Román Rosado, Ainara, 2007. "The Impact of Firm Level Contracting on Wage Levels and Inequality: Spain 1995-2002," DFAEII Working Papers 2007-07, University of the Basque Country - Department of Foundations of Economic Analysis II.
  7. Arijit Mukherjee, 2012. "Product market competition, open shop union and wage," Journal of Economics, Springer, vol. 107(2), pages 183-190, October.
  8. John Schmitt, 2008. "The Union Wage Advantage for Low-Wage Workers," CEPR Reports and Issue Briefs 2008-17, Center for Economic and Policy Research (CEPR).
  9. R. Alison Felix & James R. Hines, Jr., 2009. "Corporate Taxes and Union Wages in the United States," NBER Working Papers 15263, National Bureau of Economic Research, Inc.
  10. David G. Blanchflower & Alex Bryson, 2003. "What Effect do Unions Have on Wages Now and Would 'What Do Unions Do' Be Surprised?," NBER Working Papers 9973, National Bureau of Economic Research, Inc.
  11. Marco de Pinto & Jochen Michaelis, 2011. "International Trade and Unemployment - the Worker-Selection Effect," MAGKS Papers on Economics 201127, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
  12. David Blanchflower & Alex Bryson, 2004. "The Union Wage Premium in the US and the UK," CEP Discussion Papers dp0612, Centre for Economic Performance, LSE.
  13. Ruiz-Verdu, Pablo, 2007. "The economics of union organization: Efficiency, information and profitability," Labour Economics, Elsevier, vol. 14(5), pages 848-868, October.

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