IDEAS home Printed from https://ideas.repec.org/a/bla/indres/v61y2022i2p193-227.html

What do unions do… for temps? Collective bargaining and the wage penalty

Author

Listed:
  • Adam Seth Litwin
  • Or Shay

Abstract

Does collective bargaining lift wages for contingent workers? Well‐worn theory suggests that temps at a covered employer earn less than otherwise similar “perms,” but still fare better than they would in a nonunion workplace. Our analysis of a national sample of matched employee–employer data first disposes of the universality of this conventional wisdom. Then, it allows us to test an alternative, contingent theory of the mitigating impact of collective bargaining on the temp wage gap predicated on received research in labor relations and institutional labor economics. We find that just how temps fare relative to perms hinges on the labor relations orientation of the employment relationship. Whereas unions clearly deliver for temps under adversarial conditions, they do not appear to do so where they adopt a more cooperative stance toward their employer counterparts.

Suggested Citation

  • Adam Seth Litwin & Or Shay, 2022. "What do unions do… for temps? Collective bargaining and the wage penalty," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 61(2), pages 193-227, April.
    • Handle: RePEc:bla:indres:v:61:y:2022:i:2:p:193-227
    DOI: 10.1111/irel.12294
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/irel.12294
    Download Restriction: no
    File URL: https://libkey.io/10.1111/irel.12294?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ioulia Bessa & Andy Charlwood & Danat Valizade, 2021. "Do Unions Cause Job Dissatisfaction? Evidence from a Quasi‐Experiment in the United Kingdom," British Journal of Industrial Relations, London School of Economics, vol. 59(2), pages 251-278, June.
    2. Andrew E. Clark, 2005. "Your Money or Your Life: Changing Job Quality in OECD Countries," British Journal of Industrial Relations, London School of Economics, vol. 43(3), pages 377-400, September.
    3. Janine Berg (ed.), 2015. "Labour Markets, Institutions and Inequality," Books, Edward Elgar Publishing, number 16143, August.
    4. Gary S. Becker, 1994. "Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, Third Edition," NBER Books, National Bureau of Economic Research, Inc, number beck94-1, September.
    5. David E. Guest & Riccardo Peccei, 2001. "Partnership at Work: Mutuality and the Balance of Advantage," British Journal of Industrial Relations, London School of Economics, vol. 39(2), pages 207-236, June.
    6. Freeman, Richard B, 1984. "Longitudinal Analyses of the Effects of Trade Unions," Journal of Labor Economics, University of Chicago Press, vol. 2(1), pages 1-26, January.
    7. Lawrence M. Kahn, 2000. "Wage Inequality, Collective Bargaining, And Relative Employment From 1985 To 1994: Evidence From Fifteen Oecd Countries," The Review of Economics and Statistics, MIT Press, vol. 82(4), pages 564-579, November.
    8. Barry T. Hirsch, 2004. "Reconsidering Union Wage Effects: Surveying New Evidence on an Old Topic," Journal of Labor Research, Transaction Publishers, vol. 25(2), pages 233-266, April.
    9. Susan N. Houseman, 2001. "Why Employers Use Flexible Staffing Arrangements: Evidence from an Establishment Survey," ILR Review, Cornell University, ILR School, vol. 55(1), pages 149-170, October.
    10. Lawrence F. Katz & Lawrence H. Summers, 1989. "Industry Rents: Evidence and Implications," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 20(1989 Micr), pages 209-290.
    11. Francis Green & Tarek Mostafa & Agnès Parent-Thirion & Greet Vermeylen & Gijs van Houten & Isabella Biletta & Maija Lyly-Yrjanainen, 2013. "Is Job Quality Becoming More Unequal?," ILR Review, Cornell University, ILR School, vol. 66(4), pages 753-784, July.
    12. Chiara Benassi & Lisa Dorigatti, 2015. "Straight to the Core — Explaining Union Responses to the Casualization of Work: The IG Metall Campaign for Agency Workers," British Journal of Industrial Relations, London School of Economics, vol. 53(3), pages 533-555, September.
    13. repec:eee:labchp:v:2:y:1986:i:c:p:1139-1181 is not listed on IDEAS
    14. Chris Forde & Gary Slater, 2016. "Labour market regulation and the ‘competition state’: an analysis of the implementation of the Agency Working Regulations in the UK," Work, Employment & Society, British Sociological Association, vol. 30(4), pages 590-606, August.
    15. Jahn, Elke J. & Pozzoli, Dario, 2013. "The pay gap of temporary agency workers — Does the temp sector experience pay off?," Labour Economics, Elsevier, vol. 24(C), pages 48-57.
    16. David H. Autor, 2001. "Why Do Temporary Help Firms Provide Free General Skills Training?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(4), pages 1409-1448.
    17. Lawrence F. Katz & Alan B. Krueger, 2019. "The Rise and Nature of Alternative Work Arrangements in the United States, 1995–2015," ILR Review, Cornell University, ILR School, vol. 72(2), pages 382-416, March.
    18. A. Colin Cameron & Pravin K. Trivedi, 2010. "Microeconometrics Using Stata, Revised Edition," Stata Press books, StataCorp LLC, number musr, March.
    19. Henrys Farber, 2005. "Nonunion Wage Rates and the Threat of Unionization," ILR Review, Cornell University, ILR School, vol. 58(3), pages 335-352, April.
    20. Ai, Chunrong & Norton, Edward C., 2003. "Interaction terms in logit and probit models," Economics Letters, Elsevier, vol. 80(1), pages 123-129, July.
    21. Edmund Heery, 2009. "Trade unions and contingent labour: scale and method," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 2(3), pages 429-442.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lewandowski, Piotr & Szymczak, Wojciech, 2024. "Automation, Trade Unions and Atypical Employment," IZA Discussion Papers 17544, Institute of Labor Economics (IZA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. James Bishop & Iris Chan, 2019. "Is Declining Union Membership Contributing to Low Wages Growth?," RBA Annual Conference Papers acp2019-06, Reserve Bank of Australia.
    2. Autor, David, 2008. "The Economics of Labor Market Intermediation: An Analytic Framework," IZA Discussion Papers 3705, Institute of Labor Economics (IZA).
    3. Dongwoo Park, 2023. "Lopsided inclusion: The impact of multi‐employer bargaining and class‐based unionism on non‐regular employment in South Korea," British Journal of Industrial Relations, London School of Economics, vol. 61(1), pages 110-132, March.
    4. Adam Seth Litwin & Sherry M. Tanious, 2021. "Information Technology, Business Strategy and the Reassignment of Work from In‐House Employees to Agency Temps," British Journal of Industrial Relations, London School of Economics, vol. 59(3), pages 816-847, September.
    5. David H. Autor, 2009. "Introduction to "Studies of Labor Market Intermediation"," NBER Chapters, in: Studies of Labor Market Intermediation, pages 1-23, National Bureau of Economic Research, Inc.
    6. Walsh, Frank, 2013. "The union wage effect and ability bias: Evidence from Ireland," Economics Letters, Elsevier, vol. 119(3), pages 296-298.
    7. John S. Heywood & W.S. Siebert & Xiangdong Wei, 2011. "Estimating the Use of Agency Workers: Can Family-Friendly Practices Reduce Their Use?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 50(3), pages 535-564, July.
    8. Chiara Benassi, 2016. "Liberalization Only at the Margins? Analysing the Growth of Temporary Work in German Core Manufacturing Sectors," British Journal of Industrial Relations, London School of Economics, vol. 54(3), pages 597-622, September.
    9. Sara Serra, 2016. "Temporary contracts' transitions: the role of training and institutions," Working Papers w201611, Banco de Portugal, Economics and Research Department.
    10. Costa-Font, Joan & Vilaplana-Prieto, Cristina, 2022. "Health shocks and housing downsizing: How persistent is ‘ageing in place’?," Journal of Economic Behavior & Organization, Elsevier, vol. 204(C), pages 490-508.
    11. Boal, William M., 2018. "Work intensity and worker safety in early twentieth-century coal mining," Explorations in Economic History, Elsevier, vol. 70(C), pages 132-149.
    12. René Böheim & Martina Zweimüller, 2013. "The Employment of Temporary Agency Workers in the UK : For or Against the Trade Unions?," Economica, London School of Economics and Political Science, vol. 80(317), pages 65-95, January.
    13. Paolo Borghi & Annalisa Murgia & Mathilde Mondon-Navazo & Petr Mezihorak, 2021. "Mind the gap between discourses and practices: Platform workers’ representation in France and Italy," European Journal of Industrial Relations, , vol. 27(4), pages 425-443, December.
    14. Carlo Gianelle, 2014. "Labor market intermediaries make the world smaller," Journal of Evolutionary Economics, Springer, vol. 24(5), pages 951-981, November.
    15. David H. Autor & Susan N. Houseman, 2006. "Temporary Agency Employment: A Way Out of Poverty?," Book chapters authored by Upjohn Institute researchers, in: Rebecca M. Blank & Sheldon H. Danziger & Robert F. Schoeni (ed.),Working and Poor: How Economic and Policy Changes Are Affecting Low-Wage Workers, pages 312-337, W.E. Upjohn Institute for Employment Research.
    16. David H. Autor & Susan N. Houseman & Sari Pekkala Kerr, 2017. "The Effect of Work First Job Placements on the Distribution of Earnings: An Instrumental Variable Quantile Regression Approach," Journal of Labor Economics, University of Chicago Press, vol. 35(1), pages 149-190.
    17. Shirota, Toyoichiro, 2020. "Note on alternative work arrangements, tasks, and compensations : Evidence from a quasi-natural experiment," Discussion paper series. A 355, Graduate School of Economics and Business Administration, Hokkaido University.
    18. Ferreira, Maria & de Grip, Andries & van der Velden, Rolf, 2018. "Does informal learning at work differ between temporary and permanent workers? Evidence from 20 OECD countries," Labour Economics, Elsevier, vol. 55(C), pages 18-40.
    19. René Böheim & Martina Zweimüller, 2009. "The employment of temporary agency workers in the UK – with or against the trade unions?," Economics working papers 2009-12, Department of Economics, Johannes Kepler University Linz, Austria.
    20. Christopher L. House & Jing Zhang, 2012. "Layoffs, Lemons and Temps," NBER Working Papers 17962, National Bureau of Economic Research, Inc.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:indres:v:61:y:2022:i:2:p:193-227. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0019-8676 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.