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Collective Bargaining Arrangements Closed Shops and Relative Pay

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Author Info
Stewart, Mark B

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Abstract

It is usually felt that workers in the union sector of the economy earn more than they would if they worked in the non-union sector ; and similarly that on average plants pay higher wages than comparable non-unionised plants. Recent evidence suggests that the average union/non-union ceteris paribus wage differential in Britain may in fact be quite small, but there is considerable variation around this average and that some groups of workers may obtain considerably larger differentials. Stewart (1983a) estimated a mean individual union membership differential for the manufacturing sector of around 8%, but found considerable variation with individual characteristics and across industries. Mulvey (1976), using aggregate industry-level data on coverage by collective agreements, found variation in the differential according to the level of bargaining and Geroski and Stewart (1986) found some evidence of difference in the differential according to the extend of coverage itself. The cumulated evidence clearly indicates that constancy of the diffential is not appropriate maintained hypothesis.

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Publisher Info
Paper provided by University of Warwick, Department of Economics in its series The Warwick Economics Research Paper Series (TWERPS) with number 273.

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Length: 24 pages
Date of creation: 1986
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Handle: RePEc:wrk:warwec:273

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  1. Mark Wooden, 2000. "Union Wage Effects in the Presence of Enterprise Bargaining," Melbourne Institute Working Paper Series wp2000n07, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
    Other versions:
  2. Tim Callan, 1991. "Male-Female Wage Differentials in Ireland," Papers WP028, Economic and Social Research Institute (ESRI). [Downloadable!]
  3. Robert Plasman & Michael Rusinek & François Rycx, 2006. "Wages and the Bargaining Regime under Multi-level Bargaining: Belgium, Denmark and Spain," Working Papers DULBEA 06-01.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
    Other versions:
  4. F Green & Stephen Machin & D Wilkinson, 1996. "Trade Unions and Training Practices in British Workplaces," CEP Discussion Papers dp0278, Centre for Economic Performance, LSE. [Downloadable!]
    Other versions:
  5. Alex Bryson, 2006. "Union Free-Riding in Britain and New Zealand," CEP Discussion Papers dp0713, Centre for Economic Performance, LSE. [Downloadable!]
  6. John Pencavel, 2003. "The Surprising Retreat of Union Britain," NBER Working Papers 9564, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  7. Andreas P. Georgiadis, 2006. "Is there a Wage-Supervision Trade-Off? Efficiency Wages Evidence From the 1990 British Workplace Industrial Relations Survey," The Centre for Market and Public Organisation 06/152, Department of Economics, University of Bristol, UK. [Downloadable!]
  8. David G. Blanchflower & Andrew J. Oswald & Mario D. Garrett, 1990. "Insider Power in Wage Determination," NBER Working Papers 3179, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  9. David Blanchflower & Alex Bryson, 2008. "Union Decline in Britain," CEP Discussion Papers dp0864, Centre for Economic Performance, LSE. [Downloadable!]
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  10. McGuinness, Seamus & Kelly, Elish & O'Connell, Philip J., 2008. "The Impact of Wage Bargaining Regime on Firm-Level Competitiveness and Wage Inequality: The Case of Ireland," Papers WP266, Economic and Social Research Institute (ESRI). [Downloadable!]
  11. Amanda Gosling & Stephen Machin, 1994. "Trade Unions and the Dispersion of Earnings in British Establishments, 1980-90," NBER Working Papers 4732, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  12. David Blanchflower & Alex Bryson, 2004. "The Union Wage Premium in the US and the UK," CEP Discussion Papers dp0612, Centre for Economic Performance, LSE. [Downloadable!]
  13. David G. Blanchflower, 1997. "Changes Over Time in Union Relative Wage Effects in Great Britain and the United States," NBER Working Papers 6100, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  14. Robin Naylor, 1995. "Unions in Decline?," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 22, pages 127-142. [Downloadable!]
  15. Alex Bryson & John Forth & Patrice Laroche, 2009. "Unions and Workplace Performance in Britain and France," CEP Discussion Papers dp0920, Centre for Economic Performance, LSE. [Downloadable!]
    Other versions:
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  17. W Brown & P Marginson & J Welsh, 2001. "The Management of Pay as the Influence of Collective Bargaining Diminishes," ESRC Centre for Business Research - Working Papers wp213, ESRC Centre for Business Research. [Downloadable!]
  18. Rycx, François & Plasman, Robert, 2003. "Industry wage differentials and the bargaining regime in a corporatist country," Economic Literature ULB 2013-787, Université libre de Bruxelles, Libraries. [Downloadable!]
  19. Tim Callan & Anne Wren, 1992. "An Economy-Wide Investigation of Sex Differences in Wage Rates," Papers WP034, Economic and Social Research Institute (ESRI). [Downloadable!]
  20. Richard Harris, 1994. "Manual Wage Differentials, Collective Bargaining and Multi-locational Firms: An Analysis Using Northern Ireland NES Data," Regional Studies, Taylor and Francis Journals, vol. 28(5), pages 483-493, August. [Downloadable!] (restricted)
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