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Union Density Effects in the Supermarket Industry

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  • ROBERT C. JOHANSSON
  • JAY S. COGGINS

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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Bibliographic 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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  1. 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.
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  9. Dale Belman & Paula B. Voos, 1993. "Wage effects of increased union coverage: Methodological considerations and new evidence," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 46(2), pages 368-380, January.
  10. 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 475-492 National Bureau of Economic Research, Inc.
  11. Jean Kinsey & Ben Senauer, 1996. "Consumer Trends and Changing Food Retailing Formats," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(5), pages 1187-1191.
  12. Robinson, Chris, 1989. "Union Endogeneity and Self-selection," Journal of Labor Economics, University of Chicago Press, vol. 7(1), pages 106-12, January.
  13. 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.
  14. 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.
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Cited by:
  1. Coombs, Christopher & Newman, Robert & Cebula, Richard & White, Mary, 2013. "The Bargaining Power of Health Care Unions: Union Wage Premiums for Registered Nurses in Hospitals," MPRA Paper 56223, University Library of Munich, Germany.
  2. Edgar Preugschat, 2009. "Unionization Patterns and Firm Reallocation," 2009 Meeting Papers 1114, Society for Economic Dynamics.

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