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Union Density Effects in the Supermarket Industry

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Author Info
ROBERT C. JOHANSSON
JAY S. COGGINS

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Abstract

Unions provide higher than competitive wages for members, but their effect on nonunion wages is not clear. We investigate the effect of union density on supermarket wages from 1986 to 1993, a period of declining real wages and declining union membership. Full-information maximum likelihood techniques are used to estimate log wage equations for both the union and nonunion sectors. Decomposition techniques then separate the union wage premium into the relative effects of densities and union membership. We find a significant, positive effect of union density for both union and nonunion employees. This effect explains approximately one-third of the union-nonunion wage differential.

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Publisher Info
Article provided by Transaction Publishers in its journal Journal of Labor Research.

Volume (Year): 23 (2002)
Issue (Month): 4 (October)
Pages: 673-684
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Handle: RePEc:tra:jlabre:v:23:y:2002:i:4:p:673-684

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Web page: http://transactionpub.metapress.com/link.asp?target=journal&id=110581

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January. [Downloadable!] (restricted)
  2. Dale Belman & Paula B. Voos, 1993. "Wage effects of increased union coverage: Methodological considerations and new evidence," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 46(2), pages 368-380, January.
  3. James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 120-137 National Bureau of Economic Research, Inc. [Downloadable!]
  4. Ashenfelter, Orley & Johnson, George E, 1972. "Unionism, Relative Wages, and Labor Quality in U.S. Manufacturing Industries," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 13(3), pages 488-508, October. [Downloadable!] (restricted)
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  5. 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 415-33, June. [Downloadable!] (restricted)
  6. Robinson, Chris, 1989. "Union Endogeneity and Self-selection," Journal of Labor Economics, University of Chicago Press, vol. 7(1), pages 106-12, January. [Downloadable!] (restricted)
  7. Budd, J.W. & Na, I.G., 1994. "The Union Membership Wage Premium for Employees Covered by Collective Bargaining Agreements," Papers 94-09, Minnesota - Industrial Relations Center.
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  8. Perloff, Jeffrey M & Sickles, Robin C, 1987. "Union Wage, Hours, and Earnings Differentials in the Construction Industry," Journal of Labor Economics, University of Chicago Press, vol. 5(2), pages 174-210, April. [Downloadable!] (restricted)
  9. Duncan, Gregory M & Leigh, Duane E, 1985. "The Endogeneity of Union Status: An Empirical Test," Journal of Labor Economics, University of Chicago Press, vol. 3(3), pages 385-402, July. [Downloadable!] (restricted)
  10. Kahn, Lawrence M, 1977. "Union Impact: A Reduced Form Approach," The Review of Economics and Statistics, MIT Press, vol. 59(4), pages 503-07, November. [Downloadable!] (restricted)
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