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Union Wage Effects in Australia: Is There Variation along the Distribution?

  • LIXIN CAI
  • AMY Y.C. LIU

This study uses quantile regression models to examine whether the union wage effect varies across the conditional wage distribution. Although for men it is evident that the union wage effect decreases when moving up the conditional wage distribution, the effect for women is relatively stable except at the extremities of the distribution. Overall, unions are found to have a larger effect on men than on women wages. The decomposition results show that for men, the union wage effect explains a substantial proportion of the observed wage gap between union and non-union workers; this is not the case for women. Copyright © 2008 The Economic Society of Australia.

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Article provided by The Economic Society of Australia in its journal Economic Record.

Volume (Year): 84 (2008)
Issue (Month): 267 (December)
Pages: 496-510

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Handle: RePEc:bla:ecorec:v:84:y:2008:i:267:p:496-510
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  1. Miller, Paul & Mulvey, Charles, 1992. "Trade Unions, Collective Voice and Fringe Benefits," The Economic Record, The Economic Society of Australia, vol. 68(201), pages 125-41, June.
  2. Mark Wooden & Simon Freidin & Nicole Watson, 2002. "The Household, Income and Labour Dynamics in Australia (HILDA)Survey: Wave 1," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 35(3), pages 339-348.
  3. Blanchflower, D. & Oswald, A., 1990. "Working Internationally," Papers 371, London School of Economics - Centre for Labour Economics.
  4. Wooden, Mark, 2001. "Union Wage Effects in the Presence of Enterprise Bargaining," The Economic Record, The Economic Society of Australia, vol. 77(236), pages 1-18, March.
  5. Ronald Oaxaca, 1971. "Male-Female Wage Differentials in Urban Labor Markets," Working Papers 396, Princeton University, Department of Economics, Industrial Relations Section..
  6. Miller, Paul & Mulvey, Charles, 1993. "What Do Australians Unions Do?," The Economic Record, The Economic Society of Australia, vol. 69(206), pages 315-42, September.
  7. David Blanchflower & Alex Bryson, 2002. "Changes over time in union relative wage effects in the UK and the US revisited," NBER Working Papers 9395, National Bureau of Economic Research, Inc.
  8. Sap, Jolande, 1993. "Bargaining power and wages : A game-theoretic model of gender differences in union wage bargaining," Labour Economics, Elsevier, vol. 1(1), pages 25-48, June.
  9. David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2005. "Rising Wage Inequality: The Role of Composition and Prices," Harvard Institute of Economic Research Working Papers 2096, Harvard - Institute of Economic Research.
  10. 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.
  11. Hiau Joo Kee, 2006. "Glass Ceiling or Sticky Floor? Exploring the Australian Gender Pay Gap," The Economic Record, The Economic Society of Australia, vol. 82(259), pages 408-427, December.
  12. Rene Morissette, 1993. "Canadian Jobs and Firm Size: Do Smaller Firms Pay Less?," Canadian Journal of Economics, Canadian Economics Association, vol. 26(1), pages 159-74, February.
  13. G. Reza Arabsheibani & Alan Marin, 2001. "Union Membership and the Union Wage Gap in the UK," LABOUR, CEIS, vol. 15(2), pages 221-236, 06.
  14. Melly, Blaise, 2005. "Decomposition of differences in distribution using quantile regression," Labour Economics, Elsevier, vol. 12(4), pages 577-590, August.
  15. repec:cup:cbooks:9780521845731 is not listed on IDEAS
  16. repec:cup:cbooks:9780521608275 is not listed on IDEAS
  17. Miller, Paul & Mulvey, Charles, 1996. "Unions, Firm Size and Wages," The Economic Record, The Economic Society of Australia, vol. 72(217), pages 138-53, June.
  18. Moshe Buchinsky, 1998. "Recent Advances in Quantile Regression Models: A Practical Guideline for Empirical Research," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 88-126.
  19. Christie, Virginia, 1992. "Union Wage Effects and the Probability of Union Membership," The Economic Record, The Economic Society of Australia, vol. 68(200), pages 43-56, March.
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