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Union Coverage Differentials. Some Estimates for Britain Using the New Earnings Survey Panel Dataset

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  • Martyn J. Andrews
  • David N. F. Bell
  • Richard Upward

Abstract

This paper reports individual‐level estimates of union/non‐union wage differentials, using coverage information from the New Earnings Survey Panel Dataset. There are no existing panel estimates for the United Kingdom. Of a number of findings, the more important are (i) fixed‐effects estimates are about one‐half the equivalent cross‐section estimates; (ii) the biggest differentials are for ‘company/district/local only’ agreements; and (iii) the differential is counter‐cyclical. Also the effect of the 1979/82 recession was probably dampened by anti‐union legislation, and the upward trend between 1975 and 1995 is due to the decentralization of collective pay bargaining.

Suggested Citation

  • Martyn J. Andrews & David N. F. Bell & Richard Upward, 1998. "Union Coverage Differentials. Some Estimates for Britain Using the New Earnings Survey Panel Dataset," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 60(1), pages 47-47, February.
    • Handle: RePEc:bla:obuest:v:60:y:1998:i:1:p:47-7
    DOI: 10.1111/1468-0084.00086
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    1. 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.
    2. N. C. O'Leary & P. D. Murphy & D. H. Blackaby, 2004. "Quantile Regression Estimates of the Union Wage Effect for Great Britain," Manchester School, University of Manchester, vol. 72(4), pages 497-514, July.
    3. John H. Pencavel, 2004. "The Surprising Retreat of Union Britain," NBER Chapters, in: Seeking a Premier Economy: The Economic Effects of British Economic Reforms, 1980–2000, pages 181-232, National Bureau of Economic Research, Inc.
    4. Manquilef-Bächler, Alejandra A. & Arulampalam, Wiji & Smith, Jennifer C., 2009. "Differences in Decline: Quantile Regression Analysis of Union Wage Differentials in the United Kingdom, 1991-2003," IZA Discussion Papers 4138, Institute of Labor Economics (IZA).
    5. Bell, David & Ritchie, Felix, 1998. "Female earnings and gender differentials in Great Britain 1977-1994," Labour Economics, Elsevier, vol. 5(3), pages 331-357, September.
    6. Donna Brown & Peter Ingram & Jonathan Wadsworth, 2004. "Everyone's A Winner? Union Effects on Persistence in Private Sector Wage Settlements: Longitudinal Evidence from Britain," School of Economics Discussion Papers 1104, School of Economics, University of Surrey.
    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. Ruiz-Verdú, Pablo, 2002. "Employer behavior when workers can unionize," DEE - Working Papers. Business Economics. WB wb020803, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.

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