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The Joint Determination of Union Status and Union Wage Effects: Some Tests of Alternative Models

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Author Info
Robinson, Chris

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Abstract

The problems of estimation and interpretation of union wage differentials are examined. The properties of cross-section and longitudinal estimators are compared. Estimates are presented and those in the literature summarized. Conflicting results are obtained. Longitudinal estimators typically produce results smaller than those of ordinary least squares, while cross-section methods raise the estimate. The paper offers a reconciliation of these results. It supports a more optimistic conclusion than that reached in reviews by Richard B. Freeman and H. Gregg Lewis, who argued that little has been learned from attempts to deal with the endogeneity issue. Comparisons between estimators are used to throw light on the process governing union status and to suggest interpretations of "union differentials" consistent with the current evidence. Copyright 1989 by University of Chicago Press.

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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Political Economy.

Volume (Year): 97 (1989)
Issue (Month): 3 (June)
Pages: 639-67
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Handle: RePEc:ucp:jpolec:v:97:y:1989:i:3:p:639-67

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  3. Damiano Kulundu Manda & Arne Bigsten & Germano Mwabu, 2005. "Trade union membership and earnings in Kenyan manufacturing firms," Applied Economics, Taylor and Francis Journals, vol. 37(15), pages 1693-1704, August. [Downloadable!] (restricted)
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  4. Denis Fougere & Dominique Goux & Éric Maurin, 2001. "Formation continue et carrières salariales. Une évaluation sur données individuelles," Annales d'Economie et de Statistique, ADRES, issue 62, pages 04, Avril-Jui. [Downloadable!]
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  5. Tavneet Suri, 2006. "Selection and Comparative Advantage in Technology Adoption," Working Papers 944, Economic Growth Center, Yale University. [Downloadable!]
  6. Edward J. Schumacher, . "What Explains Union Membership Contract Coverage Wage Differentials?," Working Papers 9719, East Carolina University, Department of Economics. [Downloadable!]
  7. Card, David, 1996. "The Effect of Unions on the Structure of Wages: A Longitudinal Analysis," Econometrica, Econometric Society, vol. 64(4), pages 957-79, July. [Downloadable!] (restricted)
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  10. Richard Harris, 1994. "Manual Wage Differentials, Collective Bargaining and Multi-locational Firms: An Analysis Using Northern Ireland NES Data," Regional Studies, Taylor and Francis Journals, vol. 28(5), pages 483-493, August. [Downloadable!] (restricted)
  11. Changhui Kang, 2003. "Union Wage Effect: New Evidence From Matched Employer-Employee Data," Departmental Working Papers wp0302, National University of Singapore, Department of Economics. [Downloadable!]
  12. J. B. Engberg & T. Kim, . "Person or Place? Parametric and semiparametric estimates of intrametropolitan earnings variation," Institute for Research on Poverty Discussion Papers 1089-96, University of Wisconsin Institute for Research on Poverty. [Downloadable!]
  13. Helge Sanner, 2003. "Imperfect Goods and Labor Markets, and the Union Wage Gap," Volkswirtschaftliche Diskussionsbeiträge 55, Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät. [Downloadable!]
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  17. Rycx, François & Plasman, Robert, 2003. "Industry wage differentials and the bargaining regime in a corporatist country," Economic Literature ULB 2013-787, Université libre de Bruxelles, Libraries. [Downloadable!]
  18. J. David Cummins & Mary A. Weiss & Richard D. Phillips, 1999. "The Incentive Effects of No Fault Automobile Insurance," Center for Financial Institutions Working Papers 99-38, Wharton School Center for Financial Institutions, University of Pennsylvania. [Downloadable!]
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