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

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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. 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.
    2. 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.

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