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Seniority, Earnings and Unions

Author

Listed:
  • Booth, Alison L
  • Frank, Jeff

Abstract

This paper uses a new data source to investigate whether wages rise more with seniority in unionized or nonunionized workplaces. The data distinguish establishments that have incremental wage scales with automatic progression by seniority. For unions with seniority scales, the union wage differential is increasing with seniority. This is not the case for unions without seniority scales. Taking account of this heterogeneity, the authors are able to reconcile previous paradoxical empirical findings. The results provide support for discriminating monopoly models of the trade union and have important efficiency and distributional implications. Copyright 1996 by The London School of Economics and Political Science.

Suggested Citation

  • Booth, Alison L & Frank, Jeff, 1996. "Seniority, Earnings and Unions," Economica, London School of Economics and Political Science, vol. 63(252), pages 673-686, November.
  • Handle: RePEc:bla:econom:v:63:y:1996:i:252:p:673-86
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    Citations

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    Cited by:

    1. Alison L. Booth & Marco Francesconi & Jeff Frank, 2002. "Temporary Jobs: Stepping Stones Or Dead Ends?," Economic Journal, Royal Economic Society, vol. 112(480), pages 189-213, June.
    2. Booth, Alison L. & Francesconi, Marco & Frank, Jeff, 2000. "Temporary jobs: who gets them, what are they worth, and do they lead anywhere?," ISER Working Paper Series 2000-13, Institute for Social and Economic Research.
    3. Booth, Alison L. & Francesconi, Marco & Frank, Jeff, 2003. "A sticky floors model of promotion, pay, and gender," European Economic Review, Elsevier, vol. 47(2), pages 295-322, April.
    4. Booth, Alison L. & Francesconi, Marco, 2000. "Collectivism versus individualism: performance-related pay and union coverage for non-standard workers in Britain," ISER Working Paper Series 2000-35, Institute for Social and Economic Research.
    5. Nicholas Lawson, 2011. "Is Collective Bargaining Pareto Efficient? A Survey of the Literature," Journal of Labor Research, Springer, vol. 32(3), pages 282-304, September.
    6. Williams, Nicolas, 2009. "Seniority, experience, and wages in the UK," Labour Economics, Elsevier, vol. 16(3), pages 272-283, June.
    7. Flabbi, Luca & Ichino, Andrea, 2001. "Productivity, seniority and wages: new evidence from personnel data," Labour Economics, Elsevier, vol. 8(3), pages 359-387, June.
    8. Paul Hek & Daniel Vuuren, 2011. "Are older workers overpaid? A literature review," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 18(4), pages 436-460, August.
    9. Zwick, Thomas, 2011. "Seniority wages and establishment characteristics," Labour Economics, Elsevier, vol. 18(6), pages 853-861.
    10. Lee, Darin & Singer, Ethan, 2014. "What's your number? Interpreting the “fair and equitable” standard in seniority integration for airlines and other industries," Economics of Transportation, Elsevier, vol. 3(1), pages 2-15.
    11. Sarah Brown & John G. Sessions, "undated". "Education, Earnings, and Fixed-Term Contracts," Discussion Papers in Public Sector Economics 01/5, Department of Economics, University of Leicester.

    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
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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