The Impact of Deunionisation on Earnings Dispersion Revisited
AbstractThis 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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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 724.
Length: 31 pages
Date of creation: Feb 2003
Date of revision:
Publication status: published in: Research in Labor Economics, 2007, 26, 337-363
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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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-02-24 (All new papers)
- NEP-LAB-2003-02-24 (Labour Economics)
- NEP-LTV-2003-02-24 (Unemployment, Inequality & Poverty)
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