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The Impact of Deunionisation on Earnings Dispersion Revisited

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Author Info
Addison, John T. () (University of South Carolina and IZA Bonn)
Bailey, Ralph (University of Birmingham)
Siebert, W. Stanley (University of Birmingham)

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Abstract

This paper examines the effects of union decline in Britain on changes in earnings dispersion between 1983 and 1995. As part and parcel of the exercise, the effects of changes in the wage gap and the variance gap are also calculated. Detailed findings are provided by gender and broad sector, allowing for worker characteristics and the skill gradient. Deunionisation is shown to account for surprisingly little of the increase in earnings dispersion in the private sector for either males or females. Although union decline has been more muted in the public sector, union effects are actually stronger here. In the public sector, unions no longer reduce earnings variation as much they once did by virtue of their growing tendency to organise more skilled groups.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 724.

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Length: 31 pages
Date of creation: Feb 2003
Date of revision:
Handle: RePEc:iza:izadps:dp724

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Related research
Keywords: deunionization union structure earnings dispersion wage gap variance gap private/public sector

Find related papers by JEL classification:
D3 - Microeconomics - - Distribution
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

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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. Bell, Brian D & Pitt, Michael K, 1998. "Trade Union Decline and the Distribution of Wages in the UK: Evidence from Kernel Density Estimation," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 60(4), pages 509-28, November.
  2. David Card & Thomas Lemieux & W. Craig Riddell, 2004. "Unions and Wage Inequality," Journal of Labor Research, Transaction Publishers, vol. 25(4), pages 519-562, October. [Downloadable!] (restricted)
  3. Richard B. Freeman, 1980. "Unionism and the dispersion of wages," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 34(1), pages 3-23, October.
    Other versions:
  4. Machin, Stephen, 1997. "The decline of labour market institutions and the rise in wage inequality in Britain," European Economic Review, Elsevier, vol. 41(3-5), pages 647-657, April. [Downloadable!] (restricted)
  5. Amanda Gosling & Thomas Lemieux, 2001. "Labour Market Reforms and Changes in Wage Inequality in the United Kingdom and the United States," NBER Working Papers 8413, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Gosling, Amanda & Machin, Stephen & Meghir, Costas, 2000. "The Changing Distribution of Male Wages in the U.K," Review of Economic Studies, Blackwell Publishing, vol. 67(4), pages 635-66, October.
    Other versions:
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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. Daniele Checchi & Jelle Visser & Herman G. van de Werfhorst, 2007. "Inequality and Union Membership: The Impact of Relative Earnings Position and Inequality Attitudes," IZA Discussion Papers 2691, Institute for the Study of Labor (IZA). [Downloadable!]
  2. A Charlwood, 2005. "The De-Collectivisation of Pay Setting in Britain 1990-1998: Incidence, Determinants and Impact," CEP Discussion Papers dp0705, Centre for Economic Performance, LSE. [Downloadable!]
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