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The Effects of Trade Unions on the Distribution of Earnings: A Sample Selectivity Approach


  • Murphy, P D
  • Sloane, Peter J
  • Blackaby, D H


Using individual microdata from six British local labor markets in 1986 containing information on both union membership and recognition the paper examines the influence of trade unions on both moments of the earnings distribution. The problem of sample selection and its impact on the estimated union wage differential is investigated. Finally the effect of union legislation on the union-mark-up is examined by comparison of the 1986 results with those of a similar study for 1975. There is evidence for both a positive wage mark-up and a reduction in earnings variability in the union sector. Further manual males do not appear to have fared as well as non-manual males between 1975 and 1986. Copyright 1992 by Blackwell Publishing Ltd

Suggested Citation

  • Murphy, P D & Sloane, Peter J & Blackaby, D H, 1992. "The Effects of Trade Unions on the Distribution of Earnings: A Sample Selectivity Approach," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 54(4), pages 517-542, November.
  • Handle: RePEc:bla:obuest:v:54:y:1992:i:4:p:517-42

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    References listed on IDEAS

    1. von Braun, Joachim & Pandya-Lorch, Rajul, 1991. "Income sources of malnourished people in rural areas: Microlevel information and policy implications," IFPRI working papers 5, International Food Policy Research Institute (IFPRI).
    2. repec:pje:journl:article1982winii is not listed on IDEAS
    3. John C. H. Fei & Gustav Ranis & Shirley W. Y. Kuo, 1978. "Growth and the Family Distribution of Income by Factor Components," The Quarterly Journal of Economics, Oxford University Press, vol. 92(1), pages 17-53.
    4. Glewwe, Paul, 1986. "The distribution of income in Sri Lanka in 1969-1970 and 1980-1981 : A decomposition analysis," Journal of Development Economics, Elsevier, vol. 24(2), pages 255-274, December.
    5. Quan, Nguyen T., 1989. "Concentration of income and land holdings : Prediction by latent variables model and partial least squares," Journal of Development Economics, Elsevier, vol. 31(1), pages 55-76, July.
    6. Fields, Gary S, 1979. "Income Inequality in Urban Colombia: A Decomposition Analysis," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 25(3), pages 327-341, September.
    7. Lerman, Robert I & Yitzhaki, Shlomo, 1985. "Income Inequality Effects by Income," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 151-156, February.
    8. Hans De Kruijk, 1987. "Sources of Income Inequality in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 26(4), pages 659-672.
    9. Graham Pyatt & Chau-nan Chen & John Fei, 1980. "The Distribution of Income by Factor Components," The Quarterly Journal of Economics, Oxford University Press, vol. 95(3), pages 451-473.
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    Cited by:

    1. Lanot, Gauthier & Walker, Ian, 1998. "The union/non-union wage differential: An application of semi-parametric methods," Journal of Econometrics, Elsevier, vol. 84(2), pages 327-349, June.
    2. N C OLeary & P D Murphy & D H Blackaby, 2003. "The Effect of Unionisation on Wages in Great Britain: Estimates from the Labour Force Survey," Economic Issues Journal Articles, Economic Issues, vol. 8(1), pages 33-46, March.
    3. Jorge Saba Arbache, 1999. "Trade Liberalisation and Insider Power: The Case of Brazil," Studies in Economics 9902, School of Economics, University of Kent.

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