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The union wage effect and ability bias: Evidence from Ireland

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  • Walsh, Frank

Abstract

We use longitudinal data from an Irish household survey to measure the union wage premium. A subsample in which the worker’s payslip was seen by the interviewer is unlikely to have measurement error for the union variable. The results support the finding that measurement error leads to a large downward bias in fixed-effects estimates of the union effect but indicate that ability bias has a small effect on the average union wage premium.

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  • Walsh, Frank, 2013. "The union wage effect and ability bias: Evidence from Ireland," Economics Letters, Elsevier, vol. 119(3), pages 296-298.
    • Handle: RePEc:eee:ecolet:v:119:y:2013:i:3:p:296-298
    DOI: 10.1016/j.econlet.2013.02.034
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    References listed on IDEAS

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    1. Barry T. Hirsch & Edward J. Schumacher, 1998. "Unions, Wages, and Skills," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 201-219.
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    8. George Jakubson, 1991. "Estimation and Testing of the Union Wage Effect Using Panel Data," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(5), pages 971-991.
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    1. Nikolov, Plamen & Jimi, Nusrat & Chang, Jerray, 2020. "The Importance of Cognitive Domains and the Returns to Schooling in South Africa: Evidence from Two Labor Surveys," Labour Economics, Elsevier, vol. 65(C).

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    More about this item

    Keywords

    Union wage premium; Ability bias; Measurement error;
    All these keywords.

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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