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Trade Union Decline and the Distribution of Wages in the UK: Evidence from Kernel Density Estimation

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Author Info

  • Bell, B.
  • Pitt, M.K.

Abstract

This paper assesses the impact of changes in union density on the male structure in the United Kingdom over the 1980s. Using four separate data sets, the authors estimate the kernel density of hourly wages for men. Counterfactual densities are then generated to predict how the distribution of wages has changed over time because of the decline in union membership. They find that approximately 20 percent of the increase in the variance of log wages over the period can be attributed to changes in unionization. The effect is particularly strong in the latter part of the period. The authors also present disaggregated estimates of the impact of declining unionization. Their results are robust across all the data sets the authors examine and similar results are obtained if union coverage is used rather than union membership. Copyright 1998 by Blackwell Publishing Ltd

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Bibliographic Info

Paper provided by Economics Group, Nuffield College, University of Oxford in its series Economics Papers with number 107.

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Length: 17 pages
Date of creation: 1995
Date of revision:
Handle: RePEc:nuf:econwp:107

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Web page: http://www.nuff.ox.ac.uk/economics/

Related research

Keywords: TRADE UNIONS; WAGES; LABOUR MARKET; EVALUATION;

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Cited by:
  1. Fei Peng & Lili Kang, 2013. "Labor Market Institutions and Skill Premiums: An Empirical Analysis on the UK, 1972-2002," Journal of Economic Issues, M.E. Sharpe, Inc., vol. 47(4), pages 959-982, December.
  2. John DiNardo & Kevin Hallock & Jorn-Steffen Pischke, 1997. "Unions and Managerial Pay," NBER Working Papers 6318, National Bureau of Economic Research, Inc.
  3. John T. Addison & Ralph W. Bailey & W. Stanley Siebert, 2009. "Wage Dispersion in a Partially Unionized Labor Force," GEMF Working Papers 2009-09, GEMF - Faculdade de Economia, Universidade de Coimbra.
  4. David Metcalf & Kirstine Hansen & Andy Charlwood, 2000. "Unions and the sword of justice: unions and pay systems, pay inequality, pay discrimination and low pay," LSE Research Online Documents on Economics 20195, London School of Economics and Political Science, LSE Library.
  5. Checchi, Daniele & Visser, Jelle & van de Werfhorst, Herman G., 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).
  6. Kharoufeh, Jeffrey P. & Goulias, Konstadinos G., 2002. "Nonparametric identification of daily activity durations using kernel density estimators," Transportation Research Part B: Methodological, Elsevier, vol. 36(1), pages 59-82, January.
  7. Töngür, Ünal & Elveren, Adem Yavuz, 2014. "Deunionization and pay inequality in OECD Countries: A panel Granger causality approach," Economic Modelling, Elsevier, vol. 38(C), pages 417-425.
  8. Pischke, Jörn-Steffen & DiNardo, John & Hallock, Kevin F., 2000. "Unions and the Labor Market for Managers," IZA Discussion Papers 150, Institute for the Study of Labor (IZA).
  9. Pannenberg, Markus & Wagner, Gert G., 2001. "Why Do Overtime Work, Overtime Compensation and the Distribution of Economic Well-Being Evidence for the West Germany and Great Britain," IZA Discussion Papers 318, Institute for the Study of Labor (IZA).
  10. David Johnston & Wang-Sheng Lee, 2011. "Explaining the Female Black-White Obesity Gap: A Decomposition Analysis of Proximal Causes," Demography, Springer, vol. 48(4), pages 1429-1450, November.
  11. Donna Brown & Peter Ingram & Jonathan Wadsworth, 2004. "Everyone's A Winner? Union Effects on Persistence in Private Sector Wage Settlements: Longitudinal Evidence from Britain," School of Economics Discussion Papers 1104, School of Economics, University of Surrey.
  12. Gosling, Amanda, 2003. "The Changing Distribution of Male and Female Wages, 1978-2000: Can the Simple Skills Story be Rejected?," CEPR Discussion Papers 4045, C.E.P.R. Discussion Papers.
  13. Richard B. Freeman, 2000. "Single Peaked Vs. Diversified Capitalism: The Relation Between Economic Institutions and Outcomes," NBER Working Papers 7556, National Bureau of Economic Research, Inc.
  14. A Charlwood & K Hansen & David Metcalf, 2000. "Unions and the Sword of Justice: Unions and Pay Systems, Pay Inequality, Pay Discrimination and Low Pay," CEP Discussion Papers dp0452, Centre for Economic Performance, LSE.
  15. Addison, John T. & Bailey, Ralph & Siebert, W. Stanley, 2003. "The Impact of Deunionisation on Earnings Dispersion Revisited," IZA Discussion Papers 724, Institute for the Study of Labor (IZA).

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