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Trade Unions, Collective Voice and Fringe Benefits

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  • Miller, Paul
  • Mulvey, Charles

Abstract

The exit/voice model of the labor market predicts that unionized workers will enjoy a greater level of fringe benefits, both absolutely and as a share of total compensation, than non- unionists. This is because unions can, through the medium of collective voice, communicate to management a picture of the preferences of the median worker. In non-union settings, however, management responds to the perceived preferences of the young, mobile workers at the hiring margin and these typically place a low priority on fringe benefits relative to money wages. Using data from the Australian Longitudinal Survey it is found that the hypothesis is supported by the evidence for Australia. Copyright 1992 by The Economic Society of Australia.

Suggested Citation

  • Miller, Paul & Mulvey, Charles, 1992. "Trade Unions, Collective Voice and Fringe Benefits," The Economic Record, The Economic Society of Australia, vol. 68(201), pages 125-141, June.
  • Handle: RePEc:bla:ecorec:v:68:y:1992:i:201:p:125-41
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    Cited by:

    1. Miller, Paul & Mulvey, Charles, 1993. "What Do Australians Unions Do?," The Economic Record, The Economic Society of Australia, vol. 69(206), pages 315-342, September.
    2. Lixin Cai & Amy Y.C. Liu, 2008. "Union Wage Effects in Australia: Is There Variation along the Distribution?," The Economic Record, The Economic Society of Australia, vol. 84(267), pages 496-510, December.
    3. Jorge Davalos & Monica Puoma Lambon-Quayefio & Samuel B. Manu, 2017. "An empirical assessment of the union facilitation effect in the Ghanaian labor market Author-Name: Nkechi S. Owoo," Working Papers PMMA 2017-08, PEP-PMMA.
    4. Feld, Lars P., 1997. "Exit, voice and income taxes: The loyalty of voters," European Journal of Political Economy, Elsevier, vol. 13(3), pages 455-478, September.

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