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Asymmetries in the Union Wage Premium in Ghana


  • Niels-Hugo Blunch
  • Dorte Verner


There is little evidence on the size of the union wage premium in developing economies. The article uses a matched employer-employee data set for Ghana and adopts a quantile regression approach that allows the effects of unionization to vary across the conditional wage distribution. It is shown that if there are intrafirm differences in unionization, there does appear to be a premium among poorer paid workers in the formal sector. Although this cannot be given a causal interpretation, it suggests important issues about how unions may affect one part of the labor market. Copyright 2004, Oxford University Press.

Suggested Citation

  • Niels-Hugo Blunch & Dorte Verner, 2004. "Asymmetries in the Union Wage Premium in Ghana," World Bank Economic Review, World Bank Group, vol. 18(2), pages 237-252.
  • Handle: RePEc:oup:wbecrv:v:18:y:2004:i:2:p:237-252

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    References listed on IDEAS

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    Cited by:

    1. Susan Hayter & Bradley Weinberg, 2011. "Mind the Gap: Collective Bargaining and Wage Inequality," Chapters,in: The Role of Collective Bargaining in the Global Economy, chapter 6 Edward Elgar Publishing.
    2. Richard B. Freeman, 2009. "Labor Regulations, Unions, and Social Protection in Developing Countries: Market distortions or Efficient Institutions?," NBER Working Papers 14789, National Bureau of Economic Research, Inc.
    3. Chaudhuri, Sarbajit, 2014. "How can trade unionism affect welfare consequences of trade and investment reforms in a developing economy?," MPRA Paper 59063, University Library of Munich, Germany.
    4. Geeta Kingdon & Justin Sandefur & Francis Teal, 2006. "Labour Market Flexibility, Wages and Incomes in Sub‐Saharan Africa in the 1990s," African Development Review, African Development Bank, vol. 18(3), pages 392-427.

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