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Unions and the Sword of Justice: Unions and Pay Systems, Pay Inequality, Pay Discrimination and Low Pay

Author

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  • Metcalf, David
  • Hansen, Kirstine
  • Charlwood, Andy

Abstract

Dispersion in pay is lower among union members than among non-unionists. This reflects two factors. First, union members and jobs are more homogeneous than their non-union counterparts. Second, union wage policies within and across firms lower pay dispersion. Unions' minimum wage targets also truncate the lower tail of the union distribution. There are two major consequences of these egalitarian union wage policies. First, the return to human capital is lower in firms which recognise unions than in the unorganised sector. Second, unions compress the wage structure by gender, race and occupation.

Suggested Citation

  • Metcalf, David & Hansen, Kirstine & Charlwood, Andy, 2001. "Unions and the Sword of Justice: Unions and Pay Systems, Pay Inequality, Pay Discrimination and Low Pay," National Institute Economic Review, National Institute of Economic and Social Research, vol. 176, pages 61-75, April.
    • Handle: RePEc:cup:nierev:v:176:y:2001:i::p:61-75_6
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    Cited by:

    1. Brown, William & Marsden, David, 2010. "Individualisation and growing diversity of employment relationships," LSE Research Online Documents on Economics 121713, London School of Economics and Political Science, LSE Library.
    2. John Forth & Nikolaos Theodoropoulos & Alex Bryson, 2023. "The role of the workplace in ethnic wage differentials," British Journal of Industrial Relations, London School of Economics, vol. 61(2), pages 259-290, June.
    3. Melanie Jones, 2024. "Disability and trade union membership in the UK," British Journal of Industrial Relations, London School of Economics, vol. 62(1), pages 28-49, March.
    4. Nicolas Bacon & Kim Hoque, 2012. "The Role and Impact of Trade Union Equality Representatives in Britain," British Journal of Industrial Relations, London School of Economics, vol. 50(2), pages 239-262, June.
    5. Mark Harcourt & Gregor Gall & Margaret Wilson, 2023. "The effects of public goods framing for a union default policy," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 44(4), pages 1197-1221, November.
    6. Mark Harcourt & Gregor Gall & Margaret Wilson, 2024. "The union default: Free‐riding solutions," Industrial Relations Journal, Wiley Blackwell, vol. 55(4), pages 267-284, July.

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