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Does Union Membership Matter? The Effect of Establishment Union Density on the Union Wage Differential

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  • Reilly, Kevin T

Abstract

This paper examines the union's effect on wages using a unique set of variables: dummy variables for the density of unionization in the establishment for which the individual works. The results suggest that after controlling for establishment union density a union member wage gain is only observed for the lowest level, the 1% to 25% density range. For the 26% or greater establishment union density ranges the union's effect on wages is for all individuals working in the establishment and not just union members. The wage gain is 20% for both the establishment union density ranges of 26% to 50% and 51% to 75%. Individuals working for an establishment with a greater than 75% establishment unioni density achieve a wage gain of 64%. Copyright 1996 by MIT Press.

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  • Reilly, Kevin T, 1996. "Does Union Membership Matter? The Effect of Establishment Union Density on the Union Wage Differential," The Review of Economics and Statistics, MIT Press, vol. 78(3), pages 547-557, August.
    • Handle: RePEc:tpr:restat:v:78:y:1996:i:3:p:547-57
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    Cited by:

    1. Mathieu Bunel & Gilles Raveaud, 2012. "Union Membership does not pay: Evidence from recent French Micro Data," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201232, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
    2. Alison L. Booth & Mark L. Bryan, 2004. "The Union Membership Wage-Premium Puzzle: Is There a Free Rider Problem?," ILR Review, Cornell University, ILR School, vol. 57(3), pages 402-421, April.
    3. Ines Blohm & Sebastian Briel & Martina Pauly & Uta Heumann & Claudia Br lin, 2006. "Comparative Human Resource Management in the European Banking Sector: The Effect of Collective Bargaining Power on Working Conditions," LIS Working papers 450, LIS Cross-National Data Center in Luxembourg.
    4. Andrews, Martyn J. & Stewart, Mark B. & Swaffield, Joanna K. & Upward, Richard, 1998. "The estimation of union wage differentials and the impact of methodological choices," Labour Economics, Elsevier, vol. 5(4), pages 449-474, December.
    5. Mathieu Bunel & Gilles Raveaud, 2011. "Union Membership does not pay," Working Papers halshs-00868217, HAL.
    6. Osberg, Lars, 1995. "Le chainon manquant : donnees sur l'element demande des marches du travail," Direction des études analytiques : documents de recherche 1995077f, Statistics Canada, Direction des études analytiques.
    7. Manquilef-Bächler, Alejandra A. & Arulampalam, Wiji & Smith, Jennifer C., 2009. "Differences in Decline: Quantile Regression Analysis of Union Wage Differentials in the United Kingdom, 1991-2003," IZA Discussion Papers 4138, Institute of Labor Economics (IZA).
    8. Tushar Kanti Nandi, 2006. "Employee Participation and Wages: An Empirical Investigation with Selectivity Correction," Department of Economics University of Siena 483, Department of Economics, University of Siena.
    9. Edward J. Schumacher, 1999. "What Explains Wage Differences Between Union Members and Covered Nonmembers?," Southern Economic Journal, John Wiley & Sons, vol. 65(3), pages 493-512, January.
    10. Osberg, Lars, 1995. "The Missing Link - Data on the Demand Side of Labour Markets," Analytical Studies Branch Research Paper Series 1995077e, Statistics Canada, Analytical Studies Branch.

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