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From bargaining to balance: How unions shape gender wage outcomes

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  • Kostøl, Fredrik B.
  • Svarstad, Elin

Abstract

Women continue to earn less than men in OECD countries. Extensive research has explored various factors contributing to the gender wage gap. However, fewer studies have examined the impact of trade unions, despite their significant role in promoting equality. In this study, we exploit exogenous variation in tax scheme incentives for union members to identify the effect of trade unions on the gender wage gap in Norwegian private sector establishments. Using administrative register data on full-time private-sector workers in the period 2000–2014, we find that increases in union density reduce wage differences between women and men within establishments. A ten-percentage point increase in the workplace union density is estimated to reduce the gender wage gap by approximately 2.7 percentage points.

Suggested Citation

  • Kostøl, Fredrik B. & Svarstad, Elin, 2025. "From bargaining to balance: How unions shape gender wage outcomes," Journal of Economic Behavior & Organization, Elsevier, vol. 236(C).
    • Handle: RePEc:eee:jeborg:v:236:y:2025:i:c:s0167268125002495
    DOI: 10.1016/j.jebo.2025.107130
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    Keywords

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    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation

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