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Union Wage Differentials in the Face of Changes in the Economic and Legal Environment

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  • Stewart, Mark B

Abstract

This paper examines changes in union wage differentials in Britain between 1980 and 1984 on the basis of two comparable establishment-level data sets. This period saw considerable economic and legislative change with potential effects on the outcomes of collective bargaining. Despite these changes, the mean differential has little change between these two years, and what there is is attributable to compositional changes, such as the shift away from the manufacturing sector and the downward shift in the establishment size distribution. The impact of the changes in unemployment and union coverage that took place is found to be minimal. Copyright 1991 by The London School of Economics and Political Science.

Suggested Citation

  • Stewart, Mark B, 1991. "Union Wage Differentials in the Face of Changes in the Economic and Legal Environment," Economica, London School of Economics and Political Science, vol. 58(230), pages 155-172, May.
  • Handle: RePEc:bla:econom:v:58:y:1991:i:230:p:155-72
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    Cited by:

    1. Millward, N., 1993. "Uses of the workplace industrial relations surveys by British labour economists," LSE Research Online Documents on Economics 20964, London School of Economics and Political Science, LSE Library.
    2. N Millward, 1993. "Uses of the Workplace Industrial Relations Surveys by British Labour Economists," CEP Discussion Papers dp0145, Centre for Economic Performance, LSE.
    3. Gosling, Amanda & Machin, Stephen, 1995. "Trade Unions and the Dispersion of Earnings in British Establishments, 1980-90," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(2), pages 167-184, May.
    4. Robin Naylor, 1995. "Unions in Decline?," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 22, pages 127-142.
    5. W Brown & P Marginson & J Welsh, 2001. "The Management of Pay as the Influence of Collective Bargaining Diminishes," Working Papers wp213, Centre for Business Research, University of Cambridge.
    6. Metcalf, David, 1993. "Transformation of British industrial relations? Institutions, conduct and outcomes 1980-1990," LSE Research Online Documents on Economics 20981, London School of Economics and Political Science, LSE Library.
    7. 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).
    8. John H. Pencavel, 2004. "The Surprising Retreat of Union Britain," NBER Chapters,in: Seeking a Premier Economy: The Economic Effects of British Economic Reforms, 1980-2000, pages 181-232 National Bureau of Economic Research, Inc.
    9. David Metcalf, 1993. "Industrial Relations and Economic Performance," British Journal of Industrial Relations, London School of Economics, vol. 31(2), pages 255-283, June.
    10. Paul Geroski & Paul Gregg & Thibaut Desjonqueres, 1995. "Did the Retreat of UK Trade Unionism Accelerate during the 1990–1993 Recession?," British Journal of Industrial Relations, London School of Economics, vol. 33(1), pages 35-54, March.
    11. David G. Blanchflower & Richard B. Freeman, 1993. "Did the Thatcher Reforms Change British Labour Performance?," NBER Working Papers 4384, National Bureau of Economic Research, Inc.
    12. 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.
    13. Jorge Saba Arbache, 1999. "Trade Liberalisation and Insider Power: The Case of Brazil," Studies in Economics 9902, School of Economics, University of Kent.
    14. Derek Leslie & Yonghao Pu, 1996. "What Caused Rising Earnings Inequality in Britain? Evidence from Time Series, 1970–1993," British Journal of Industrial Relations, London School of Economics, vol. 34(1), pages 111-130, March.
    15. Ruiz-Verdú, Pablo, 2002. "Employer behavior when workers can unionize," DEE - Working Papers. Business Economics. WB wb020803, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    16. David Metcalf, 1993. "Transformation of British Industrial Relations? Institutions, Conduct and Outcomes 1980-1990," CEP Discussion Papers dp0151, Centre for Economic Performance, LSE.
    17. Forth, John & Millward, Neil, 2002. "Union effects on pay levels in Britain," Labour Economics, Elsevier, vol. 9(4), pages 547-561, September.
    18. Stephen Machin, 1995. "Plant Closures and Unionization in British Establishments," British Journal of Industrial Relations, London School of Economics, vol. 33(1), pages 55-68, March.

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