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Union Wage Effects: Does Membership Matter?

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Author Info

  • Barth, E.
  • Raaum, O.
  • Naylor, R.

Abstract

We exploit rare information on the union status of both individual employees and of their workplaces to address two related issues. First, we find a positive effect of workplace trade union density on the level of the individual's pay. Second, we find that the individual's unions membership status loses its significance when we control for establishment-level density. The union wage effect is therefore a pure public good, with individual membership conveying a positive wage externality.

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Bibliographic Info

Paper provided by University of Warwick, Department of Economics in its series The Warwick Economics Research Paper Series (TWERPS) with number 500.

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Length: 23 pages
Date of creation: 1998
Date of revision:
Handle: RePEc:wrk:warwec:500

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Keywords: LABOUR UNIONS ; WAGES;

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Citations

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Cited by:
  1. Sebastian Braun, 2009. "Should trade unions welcome foreign investors? First evidence from Danish matched employer-employee data," Economics Bulletin, AccessEcon, vol. 29(2), pages 1175-1181.
  2. Askildsen, Jan Erik & Nilsen, Oivind Anti, 2002. "Union membership and wage formation," European Journal of Political Economy, Elsevier, vol. 18(2), pages 345-363, June.
  3. Barth, Erling & Bratsberg, Bernt & Naylor, Robin A. & Raaum, Oddbjørn, 2002. "Explaining Variations in Wage Curves: Theory and Evidence," Memorandum 03/2002, Oslo University, Department of Economics.
  4. Manquilef-Bächler, Alejandra A. & Arulampalam, Wiji & Smith, Jennifer C., 2009. "Differences in Decline: Quantile Regression Analysis of Union Wage Differentials in the United Kingdom, 1991-2003," IZA Discussion Papers 4138, Institute for the Study of Labor (IZA).
  5. Bastos, Paulo & Kreickemeier, Udo & Wright, Peter, 2009. "Oligopoly, open shop unions and trade liberalisation," International Journal of Industrial Organization, Elsevier, vol. 27(6), pages 679-686, November.
  6. Andrews, Martyn J. & Stewart, Mark B. & Swaffield, Joanna K. & Upward, Richard, 1998. "The estimation of union wage differentials and the impact of methodological choices," Labour Economics, Elsevier, vol. 5(4), pages 449-474, December.
  7. Bernt Bratsberg & Oddbjørn Raaum, 2011. "Immigration and Wages: Evidence from Construction," Norface Discussion Paper Series 2011016, Norface Research Programme on Migration, Department of Economics, University College London.
  8. Erling Barth & Bernt Bratsberg & Torbjørn Hægeland & Oddbjørn Raaum, 2008. "Performance Pay and Within-Firm Wage Inequality," Discussion Papers 535, Research Department of Statistics Norway.
  9. Erling Barth & Harald Dale-Olsen, 2011. "Employer Size or Skill Group Size Effect on Wages?," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 64(2), pages 341-355, January.

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