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Unions and the rise in wage inequality in Britain

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  • Derek Leslie
  • Yonghao Pu

Abstract

This paper lends support to the political explanation for the observed rising wage inequality in Britain in the 1980s and early 1990s. The decline of collective bargaining and other changes in pay arrangements during this time have been to the disadvantage of the low paid. We seek support using a cointegration framework, focusing on union density and strike variables.

Suggested Citation

  • Derek Leslie & Yonghao Pu, 1995. "Unions and the rise in wage inequality in Britain," Applied Economics Letters, Taylor & Francis Journals, vol. 2(8), pages 266-270.
  • Handle: RePEc:taf:apeclt:v:2:y:1995:i:8:p:266-270
    DOI: 10.1080/135048595357203
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    References listed on IDEAS

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    1. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    2. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
    3. Phillips, Peter C B & Ouliaris, S, 1990. "Asymptotic Properties of Residual Based Tests for Cointegration," Econometrica, Econometric Society, vol. 58(1), pages 165-193, January.
    4. William Brown, 1993. "The Contraction of Collective Bargaining in Britain," British Journal of Industrial Relations, London School of Economics, vol. 31(2), pages 189-200, June.
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    Cited by:

    1. Chris Sakellariou, 2012. "Unconditional quantile regressions, wage growth and inequality in the Philippines, 2001--2006: the contribution of covariates," Applied Economics, Taylor & Francis Journals, vol. 44(29), pages 3815-3830, October.
    2. Marco Lilla & Stefano Staffolani, 2009. "The evolution of wage inequality in Italy," Applied Economics, Taylor & Francis Journals, vol. 41(15), pages 1873-1892.
    3. P. Jenkins, Stephen & Jäntti, Markus, 2001. "Examining the impact of macro-economic conditions on income inequality," ISER Working Paper Series 2001-17, Institute for Social and Economic Research.
    4. Andrea Vaona, 2010. "A survival analysis approach to the duration of union membership in Italy," Applied Economics Letters, Taylor & Francis Journals, vol. 17(11), pages 1089-1093.

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