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The Impact of Unions on the Wage Distribution: Evidence from Higher Education

Author

Listed:
  • Michael Baker
  • Yosh Halberstam
  • Kory Kroft
  • Alexandre Mas
  • Derek Messacar

Abstract

We estimate the impact of unionization on the wage distribution of Canadian university faculty using longitudinal administrative data on salaries and exploiting the staggered rollout of unionization across institutions. We find that unionization compressed salaries: Wages at the bottom of the unconditional distribution increased by roughly 10 percent, while wages at the top were unaffected. Our evidence suggests that these distributional impacts were driven by the introduction of contractual salary floors. We also estimate little impact of unionization on faculty employment. Instead, our results suggest that the increase in universities' wage bills was financed by an increase in student enrollment.

Suggested Citation

  • Michael Baker & Yosh Halberstam & Kory Kroft & Alexandre Mas & Derek Messacar, 2026. "The Impact of Unions on the Wage Distribution: Evidence from Higher Education," American Economic Review: Insights, American Economic Association, vol. 8(2), pages 196-213, June.
    • Handle: RePEc:aea:aerins:v:8:y:2026:i:2:p:196-213
    DOI: 10.1257/aeri.20240722
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    More about this item

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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