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The Union Wage Advantage for Low-Wage Workers

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Author Info
John Schmitt

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Abstract

This report uses national data from 2003 to 2007 to show that unionization raises the wages of the typical low-wage worker (one in the 10th percentile) by 20.6 percent compared to 13.7 percent for the typical medium wage worker (one in the 50th percentile), 6.1 percent for the typical high-wage worker (one in the 90th percentile). The paper also produces results for the 50 states and the District of Columbia. Throughout the states, a similar pattern holds, with unionization raising the wages of the lowest-wage workers the most.

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Publisher Info
Paper provided by Center for Economic and Policy Research (CEPR) in its series CEPR Reports and Issue Briefs with number 2008-17.

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Length: 10 pages
Date of creation: May 2008
Date of revision:
Handle: RePEc:epo:papers:2008-17

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Related research
Keywords: unions; wages; benefits; pension;

Other versions of this item:

Find related papers by JEL classification:
J - Labor and Demographic Economics
J1 - Labor and Demographic Economics - - Demographic Economics
J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
J6 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies
J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
J68 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Public Policy
J88 - Labor and Demographic Economics - - Labor Standards - - - Public Policy

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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.:
  1. Barry T. Hirsch & Edward J. Schumacher, 2004. "Match Bias in Wage Gap Estimates Due to Earnings Imputation," Journal of Labor Economics, University of Chicago Press, vol. 22(3), pages 689-722, July. [Downloadable!]
    Other versions:
  2. Bernt Bratsberg & James F. Ragan & Jr, 2002. "Changes in the union wage premium by industry," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 56(1), pages 65-83, October.
  3. Peter D. Linneman & Michael L. Wachter & William H. Carter, 1990. "Evaluating the evidence on union employment and wages," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 44(1), pages 34-53, October.
  4. Alex Bryson, 2002. "The Union Membership Wage Premium: An Analysis Using Propensity Score Matching," CEP Discussion Papers dp0530, Centre for Economic Performance, LSE. [Downloadable!]
  5. Marco Manacorda, 2004. "Can the Scala Mobile Explain the Fall and Rise of Earnings Inequality in Italy? A Semiparametric Analysis, 19771993," Journal of Labor Economics, University of Chicago Press, vol. 22(3), pages 585-614, July. [Downloadable!]
  6. Barry T. Hirsch & Edward J. Schumacher, 2001. "Private Sector Union Density and the Wage Premium: Past, Present, and Future ," Journal of Labor Research, Transaction Publishers, vol. 22(3), pages 487-518, July. [Downloadable!] (restricted)
    Other versions:
  7. Roger Koenker & Kevin F. Hallock, 2001. "Quantile Regression," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 143-156, Fall. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, 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.)

  1. John Schmitt & Hye Jin Rho, 2008. "The Reagan Question: Are You Better Off Now Than You Were Eight Years Ago?," CEPR Reports and Issue Briefs 2008-27, Center for Economic and Policy Research (CEPR). [Downloadable!]
  2. Dean Baker, 2008. "The Key to Stabilizing House Prices: Bring Them Down," CEPR Reports and Issue Briefs 2008-32, Center for Economic and Policy Research (CEPR). [Downloadable!]
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