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Are There Gains to Joining a Union? Evidence from Mexico

Author

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  • Héctor Gutiérrez Rufrancos

Abstract

Union density in Mexico has been in decline since the 1980s. This article provides evidence on the worker compensation gains (losses) made by males upon joining (leaving) a union. These are estimated using a nationally representative labour market survey covering 2005q1–2016q1. The transitions between non‐union and union status are investigated using a difference‐in‐difference estimator. The findings suggest that joining a union is associated with modest wage gains, contrary to what the literature has shown for most industrialized nations. However, in contrast to this, some union leavers are found to experience a decrease in wages. This article also contributes to the wider literature by providing the first estimates of the longitudinal gain (loss) associated with joining (leaving) a union with respect to non‐wage benefits. The findings show joining (leaving) a union increases (decreases) the probability of being in receipt of legally guaranteed benefits such as bonuses and paid holidays. This suggests that although union density may be in decline, unions still have an important role to play in voicing worker's preferences with respect to compensation and ensuring that employers comply with the law.

Suggested Citation

  • Héctor Gutiérrez Rufrancos, 2019. "Are There Gains to Joining a Union? Evidence from Mexico," British Journal of Industrial Relations, London School of Economics, vol. 57(3), pages 676-712, September.
    • Handle: RePEc:bla:brjirl:v:57:y:2019:i:3:p:676-712
    DOI: 10.1111/bjir.12463
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    Cited by:

    1. Clemens, Marco & Goerke, Laszlo, 2026. "Trade union membership and bonus payments: German survey evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 242(C).

    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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