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Tenure, Unions, and the Relationship between Employer Size and Wages

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  • Pearce, James E
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    Abstract

    The unionization rate in a worker's industry and the worker's tenure are interacted with employer size in wage regressions using Current Population Survey data. The results provide insight into the relatively small size-wage relationship in the union sector. Nonunion tenure profiles steepen sharply with establishment size, while union profiles flatten. Also, the effect of industry unionization increases with firm size in the nonunion sector, a pattern indicative of threat effects. A separate analysis of nonunion wages indicates that size-wage relationships are stronger in occupations associated with high monitoring costs. Copyright 1990 by University of Chicago Press.

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    Bibliographic Info

    Article provided by University of Chicago Press in its journal Journal of Labor Economics.

    Volume (Year): 8 (1990)
    Issue (Month): 2 (April)
    Pages: 251-69

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    Handle: RePEc:ucp:jlabec:v:8:y:1990:i:2:p:251-69

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    Web page: http://www.journals.uchicago.edu/JOLE/

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    Cited by:
    1. Edward Montgomery & Kathryn Shaw, 1992. "Pensions and Wage Premia," NBER Working Papers 3985, National Bureau of Economic Research, Inc.
    2. Nikolaj Malchow-Møller & James R. Markusen & Bertel Schjerning, 2007. "Foreign Firms, Domestic Wages," NBER Working Papers 13001, National Bureau of Economic Research, Inc.
    3. Peter Kuhn & Arthur Sweetman, . "Vulnerable Seniors: Unions, Tenure and Wages Following Permanent Job Loss," Canadian International Labour Network Working Papers 20, McMaster University.
    4. Schaffner, Julie Anderson, 1998. "Premiums to employment in larger establishments: evidence from Peru," Journal of Development Economics, Elsevier, vol. 55(1), pages 81-113, February.
    5. Albaek, Karsten & Arai, Mahmood & Asplund, Rita & Barth, Erling & Strojer Madsen, Erik, 1998. "Measuring wage effects of plant size," Labour Economics, Elsevier, vol. 5(4), pages 425-448, December.
    6. Todd Idson, 2000. "Employer Size Effects in Russia," William Davidson Institute Working Papers Series 300, William Davidson Institute at the University of Michigan.

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