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The Effect of Trade Unionism on Fringe Benefits

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  • Richard B. Freeman

Abstract

This paper analyzes the impact of unionism on the fringes paid blue-collar workers using data on individual establishments. The main substantive finding is that trade unionism raises the fringe share of compensation, particularly pension and life, accident and health insurance. The magnitude of the effect is sufficiently large as to suggest that estimates which neglect fringes understate the union effect on compensation. The paper uses the data on the compensation of blue-collar and white-collar workers within an establishment to control for within-establishment pay policies and estimate the potential effect of blue-collar unionism on the fringes of white-collar workers.

Suggested Citation

  • Richard B. Freeman, 1978. "The Effect of Trade Unionism on Fringe Benefits," NBER Working Papers 0292, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:0292
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    References listed on IDEAS

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    1. Freeman, Richard B, 1976. "Individual Mobility and Union Voice in the Labor Market," American Economic Review, American Economic Association, vol. 66(2), pages 361-368, May.
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    Cited by:

    1. Peter Kuhn, 1982. "Malfeasance in Long Term Employment Contracts: A New General Model with an Application to Unionism," NBER Working Papers 1045, National Bureau of Economic Research, Inc.
    2. repec:eee:labchp:v:1:y:1986:i:c:p:305-355 is not listed on IDEAS
    3. Jacob Mincer, 1981. "The Economics of Wage Floors," NBER Working Papers 0804, National Bureau of Economic Research, Inc.
    4. B. Wolfe & S. Zuvekas, "undated". "Nonmarket outcomes of schooling," Institute for Research on Poverty Discussion Papers 1065-95, University of Wisconsin Institute for Research on Poverty.
    5. Shi Li & Yaohui Zhao, 2003. "The Decline of In-kind Wage Payments in Urban China," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 1(2), pages 245-258.

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