Advanced Search
MyIDEAS: Login

Union Density Effects In The Supermarket Industry

Contents:

Author Info

  • Johansson, Robert C.
  • Coggins, Jay S.
  • Senauer, Benjamin

Abstract

Higher union density (the percentage of employees in an area who belong to unions) is known to raise the wages of union members. We find that in the supermarket industry, higher density locally also leads to higher wages for non-union members. Despite this, workers who are not in unions lose ground relative to union members. For a 10% increase in local union densities in the supermarket industry it is estimated that the wages of union employees in that labor market will increase by 5.3% and by 1.2% for nonunion. Hence, the union wage premium will increase in regions with higher union densities. At the time of the last national examination of the retail industry in 1977, union influence in the retail food industry was near its peak. Subsequently union membership and influence have declined. In 1993 a reported 25.7% of supermarket employees listed themselves as union members, a decline from 29.4% in 1984 (NBER, 1995). After conducting an extensive review of wage estimation literature, we focus on the structure of wages in the supermarket industry between 1984 and 1993. The effect of union penetration in local markets on nonunion wages or the "spill-over" effect, is an important focus of this study. While it is widely accepted that the higher the union percentage in local labor markets the higher the wages for those in the union, the corresponding effect has not been closely examined for the nonunion sector. To investigate this phenomenon we first replicate as closely as possible the results of a previous supermarket wage study (Belman and Voos, 1993). Following a baseline comparison of this initial estimation, we enlarge the data set to include individuals in rural areas and from additional years. By using a more sophisticated estimation technique we find that increasing union densities positively affect union and nonunion wages. The significant results for the nonunion sector is of particular importance, as this is the first confirmation of this effect to the best of our knowledge.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://purl.umn.edu/14313
Download Restriction: no

Bibliographic Info

Paper provided by University of Minnesota, The Food Industry Center in its series Working Papers with number 14313.

as in new window
Length:
Date of creation: 1999
Date of revision:
Handle: RePEc:ags:umrfwp:14313

Contact details of provider:
Postal: 317 Classroom Office Building, 1994 Buford Avenue, St. Paul, MN 55108-6040
Phone: 612-625-7019
Fax: 612-625-2729
Web page: http://foodindustrycenter.umn.edu/
More information through EDIRC

Related research

Keywords: Agribusiness; Labor and Human Capital; Marketing;

Other versions of this item:

References

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.:
as in new window
  1. 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.
  2. Orley Ashenfelter & George E. Johnson, 1971. "Unionism, Relative Wages, and Labor Quality in U.S. Manufacturing Industries," Working Papers 382, Princeton University, Department of Economics, Industrial Relations Section..
  3. Kinsey, Jean D. & Senauer, Benjamin, 1996. "Food Marketing In An Electronic Age: Implications For Agricultural Producers," Working Papers 14303, University of Minnesota, The Food Industry Center.
  4. Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
  5. Budd, John W & Na, In-Gang, 2000. "The Union Membership Wage Premium for Employees Covered by Collective Bargaining Agreements," Journal of Labor Economics, University of Chicago Press, vol. 18(4), pages 783-807, October.
  6. Daniel Diermeier & Roger B. Myerson, 1994. "Bargaining," Discussion Papers 1089, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  7. 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.
  8. 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.
  9. 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.
  10. Kathryn L. Shaw, 1984. "A Formulation of the Earnings Function Using the Concept of Occupational Investment," Journal of Human Resources, University of Wisconsin Press, vol. 19(3), pages 319-340.
  11. Robinson, Chris, 1989. "Union Endogeneity and Self-selection," Journal of Labor Economics, University of Chicago Press, vol. 7(1), pages 106-12, January.
  12. 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.
  13. 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.
  14. Schmidt, Peter & Strauss, Robert P, 1976. "The Effect of Unions on Earnings and Earnings on Unions: A Mixed Logit Approach," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 17(1), pages 204-12, February.
  15. 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.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Edgar Preugschat, 2009. "Unionization Patterns and Firm Reallocation," 2009 Meeting Papers 1114, Society for Economic Dynamics.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ags:umrfwp:14313. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.