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Wage Differentials, Bargaining Protocols, and Trade Unionism in Mid-Twentieth Century American Labor Markets

Author

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  • Pencavel, John

    (Stanford University)

Abstract

Income inequality has been lower in periods when trade unionism has been strong. Using observations on wages by occupation, by geography, and by gender in collective bargaining contracts from the 1940s to the 1970s, patterns in movements of wage differentials are revealed. As wages increased, some contracts maintained relative wage differentials constant, some maintained absolute differences in wages constant, others combined these two patterns, and some did not reveal an obvious pattern. The patterns persisted even as price inflation increased in the 1970s. The dominant pattern implies a reduction in inequality as usually measured.

Suggested Citation

  • Pencavel, John, 2020. "Wage Differentials, Bargaining Protocols, and Trade Unionism in Mid-Twentieth Century American Labor Markets," IZA Discussion Papers 13175, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp13175
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    More about this item

    Keywords

    bargaining; wage differentials; income inequality; trade unions;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • N32 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: 1913-

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