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Specification issues in the modelling of union status determination

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  • Keith Bender

Abstract

This paper investigates the relationship between econometric and variable specification in a model of union status determination. In a departure from the union membership literature, it is hypothesized that the industrial characteristics should not affect union status determination directly, but rather through bargained wages. A data set which combines personal and industrial characteristics is used to examine these issues. It is found that if sample selection into union jobs is controlled for, the industrial variables add no explanatory power to the union status equations, although they are important in the wage equations.

Suggested Citation

  • Keith Bender, 1997. "Specification issues in the modelling of union status determination," Applied Economics Letters, Taylor & Francis Journals, vol. 4(8), pages 481-485.
    • Handle: RePEc:taf:apeclt:v:4:y:1997:i:8:p:481-485
    DOI: 10.1080/758536630
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    References listed on IDEAS

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    1. Farber, Henry S., 1983. "The Determination of the Union Status of Workers," The Warwick Economics Research Paper Series (TWERPS) 227, University of Warwick, Department of Economics.
    2. David A. MacPherson & James B. Stewart, 1990. "The Effect of International Competition on Union and Nonunion Wages," ILR Review, Cornell University, ILR School, vol. 43(4), pages 434-446, July.
    3. repec:eee:labchp:v:2:y:1986:i:c:p:1139-1181 is not listed on IDEAS
    4. Farber, Henry S, 1983. "The Determination of the Union Status of Workers," Econometrica, Econometric Society, vol. 51(5), pages 1417-1437, September.
    5. John M. Abowd & Henry S. Farber, 1982. "Job Queues and the Union Status of Workers," ILR Review, Cornell University, ILR School, vol. 35(3), pages 354-367, April.
    6. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    7. Michael A. Curme & Barry T. Hirsch & David A. MacPherson, 1990. "Union Membership and Contract Coverage in the United States, 1983–1988," ILR Review, Cornell University, ILR School, vol. 44(1), pages 5-33, October.
    8. Lee, Lung-Fei, 1978. "Unionism and Wage Rates: A Simultaneous Equations Model with Qualitative and Limited Dependent Variables," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(2), pages 415-433, June.
    9. Gregory M. Duncan & Duane E. Leigh, 1980. "Wage Determination in the Union and Nonunion Sectors: A Sample Selectivity Approach," ILR Review, Cornell University, ILR School, vol. 34(1), pages 24-34, October.
    10. Robinson, Chris, 1989. "Union Endogeneity and Self-selection," Journal of Labor Economics, University of Chicago Press, vol. 7(1), pages 106-112, January.
    11. Robinson, Chris, 1989. "The Joint Determination of Union Status and Union Wage Effects: Some Tests of Alternative Models," Journal of Political Economy, University of Chicago Press, vol. 97(3), pages 639-667, June.
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    Cited by:

    1. 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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