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Seniority, Earnings and Unions

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  • Booth, Alison L
  • Frank, Jeff

Abstract

This paper uses a new data source to investigate whether wages rise more with seniority in unionized or non-unionized workplaces. The data distinguish workers who are covered by incremental wage scales with automatic progression by seniority. For union workers with seniority scales, the union wage differential increases with seniority. This is not the case for union workers without seniority scales. Taking account of this heterogeneity, we are able to reconcile previous paradoxical empirical findings. The results provide support for discriminating monopoly models of the trade union and have important efficiency and distributional implications.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1007.

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Date of creation: Jul 1994
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Handle: RePEc:cpr:ceprdp:1007

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Related research

Keywords: Discriminating Monopoly Union Models; Earnings; Incremental Wage Scales; Seniority; Trade Unions;

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Cited by:
  1. Sarah Brown & John G. Sessions, . "Education, Earnings, and Fixed-Term Contracts," Discussion Papers in Public Sector Economics 01/5, Department of Economics, University of Leicester.
  2. Booth, Alison L. & Francesconi, Marco & Frank, Jeff, 2000. "Temporary Jobs: Stepping Stones or Dead Ends?," IZA Discussion Papers 205, Institute for the Study of Labor (IZA).
  3. Nicholas Lawson, 2011. "Is Collective Bargaining Pareto Efficient? A Survey of the Literature," Journal of Labor Research, Springer, vol. 32(3), pages 282-304, September.
  4. Booth, Alison L. & Francesconi, Marco & Frank, Jeff, 2003. "A sticky floors model of promotion, pay, and gender," European Economic Review, Elsevier, vol. 47(2), pages 295-322, April.
  5. Paul Hek & Daniel Vuuren, 2011. "Are older workers overpaid? A literature review," International Tax and Public Finance, Springer, vol. 18(4), pages 436-460, August.
  6. Flabbi, Luca & Ichino, Andrea, 1998. "Productivity, Seniority and Wages: New Evidence from Personnel Data," CEPR Discussion Papers 1966, C.E.P.R. Discussion Papers.
  7. Zwick, Thomas, 2011. "Seniority wages and establishment characteristics," Labour Economics, Elsevier, vol. 18(6), pages 853-861.
  8. Williams, Nicolas, 2009. "Seniority, experience, and wages in the UK," Labour Economics, Elsevier, vol. 16(3), pages 272-283, June.
  9. repec:ese:iserwp:2000-35 is not listed on IDEAS
  10. repec:ese:iserwp:2000-13 is not listed on IDEAS

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