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Unions and the Sword of Justice: Unions and Pay Systems, Pay Inequality, Pay Discrimination and Low Pay

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  • David Metcalf
  • Kirstine Hansen
  • Andy Charlwood

    (Centre for Economic Performance, London School of Economics)

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    Abstract

    Dispersion in pay is lower among union members than among non-unionists. This reflects two factors. First, union members and jobs are more homogeneous than their non-union counterparts. Second, union wage policies within and across firms lower pay dispersion. Unions’ minimum wage targets also truncate the lower tail of the union distribution. There are two major consequences of these egalitarian union wage policies. First, the return to human capital is lower in firms which recognise unions than in the unorganised sector. Second, unions compress the wage structure by gender, race and occupation.

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    Bibliographic Info

    Article provided by National Institute of Economic and Social Research in its journal National Institute Economic Review.

    Volume (Year): 176 (2001)
    Issue (Month): 1 (April)
    Pages: 61-75

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    Handle: RePEc:sae:niesru:v:176:y:2001:i:1:p:61-75

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    Cited by:
    1. David Blanchflower & Alex Bryson, 2004. "The Union Wage Premium in the US and the UK," CEP Discussion Papers dp0612, Centre for Economic Performance, LSE.
    2. Alex Bryson & P Willman, 2007. "Union Organization in Great Britain," CEP Discussion Papers dp0774, Centre for Economic Performance, LSE.
    3. Unal Tongur & Adem Yavuz Elveren, 2013. "Deunionization and Pay Inequality in OECD Countries: A Panel Granger Causality Approach," ERC Working Papers 1306, ERC - Economic Research Center, Middle East Technical University, revised May 2013.
    4. David Marsden, 2010. "The end of national models in employment relations?," LSE Research Online Documents on Economics 48913, London School of Economics and Political Science, LSE Library.
    5. Michail Veliziotis, 2013. "Trade Unions and Unpaid Overtime in Britain," Working Papers 20131304, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
    6. Alex Bryson, 2002. "The union membership wage premium: an analysis using propensity score matching," LSE Research Online Documents on Economics 4953, London School of Economics and Political Science, LSE Library.
    7. Basak Kus, 2012. "Financialisation and Income Inequality in OECD Nations:1995-2007," The Economic and Social Review, Economic and Social Studies, vol. 43(4), pages 477-495.

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