IDEAS home Printed from https://ideas.repec.org/a/sae/ilrrev/v34y1980i1p24-34.html
   My bibliography  Save this article

Wage Determination in the Union and Nonunion Sectors: A Sample Selectivity Approach

Author

Listed:
  • Gregory M. Duncan
  • Duane E. Leigh

Abstract

This paper re-examines the question, recently raised in this journal by Bloch and Kuskin, of whether wages are determined differently in the union and nonunion sectors. Whereas Bloch and Kuskin employed ordinary least squares to estimate separate wage equations for the two sectors, this study uses a methodology proposed by Heckman and by Lee to correct for the possibility that wage differences may determine the union status of workers as well as vice versa. The authors find that union status is strongly related to the predicted union-nonunion wage differential, but their evidence nevertheless reinforces Bloch and Kuskin's empirical finding that the union earnings function is less sensitive than the nonunion earnings function to changes in nearly every observable attribute of workers, such as education and experience. The authors also conclude that previous studies using separately estimated union and nonunion wage equations may have understated the success of unions in raising the relative wages of their members.

Suggested Citation

  • Gregory M. Duncan & Duane E. Leigh, 1980. "Wage Determination in the Union and Nonunion Sectors: A Sample Selectivity Approach," ILR Review, Cornell University, ILR School, vol. 34(1), pages 24-34, October.
  • Handle: RePEc:sae:ilrrev:v:34:y:1980:i:1:p:24-34
    as

    Download full text from publisher

    File URL: http://ilr.sagepub.com/content/34/1/24.abstract
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Barry T. Hirsch, 2004. "Reconsidering Union Wage Effects: Surveying New Evidence on an Old Topic," Journal of Labor Research, Transaction Publishers, vol. 25(2), pages 233-266, April.
    2. Edward J. Schumacher, "undated". "What Explains Union Membership Contract Coverage Wage Differentials?," Working Papers 9719, East Carolina University, Department of Economics.
    3. Gyourko, Joseph & Tracy, Joseph, 1988. "An Analysis of Public- and Private-Sector Wages Allowing for Endogenous Choices of Both Government and Union Status," Journal of Labor Economics, University of Chicago Press, vol. 6(2), pages 229-253, April.
    4. Günalp, Burak & Cilasun, Seyit Mümin & Acar, Elif Öznur, 2013. "Male-Female Labor Market Participation and the Extent of Gender-Based Wage Discrimination in Turkey," MPRA Paper 51503, University Library of Munich, Germany.
    5. Kathy A. Paulson Gjerde, 2002. "The existence of gender-specific promotion standards in the U.S," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 23(8), pages 447-459.
    6. Luis Armando Galvis, 2010. "Diferenciales salariales por género y región en Colombia: una aproximación con regresión por cuantiles," REVISTA DE ECONOMÍA DEL ROSARIO, UNIVERSIDAD DEL ROSARIO, November.
    7. Salma Ahmed & Pushkar Maitra, 2015. "A Distributional Analysis of the Gender Wage Gap in Bangladesh," Journal of Development Studies, Taylor & Francis Journals, vol. 51(11), pages 1444-1458, November.
    8. Fortin, Nicole & Lemieux, Thomas & Firpo, Sergio, 2011. "Decomposition Methods in Economics," Handbook of Labor Economics, Elsevier.
    9. W. Kip Viscusi, 1986. "Market Incentives for Criminal Behavior," NBER Chapters,in: The Black Youth Employment Crisis, pages 301-351 National Bureau of Economic Research, Inc.
    10. repec:iza:izadps:dp1362 is not listed on IDEAS
    11. Budd, John W & Na, In-Gang, 2000. "The Union Membership Wage Premium for Employees Covered by Collective Bargaining Agreements," Journal of Labor Economics, University of Chicago Press, vol. 18(4), pages 783-807, October.
    12. Cihan Bilginsoy, 2013. "Union Wage Gap in the U.S. Construction Sector: 1983–2007," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 52(3), pages 677-701, July.
    13. Changhui Kang, 2003. "Union Wage Effect: New Evidence From Matched Employer-Employee Data," Departmental Working Papers wp0302, National University of Singapore, Department of Economics.
    14. repec:eee:labchp:v:2:y:1986:i:c:p:1139-1181 is not listed on IDEAS
    15. Denis Y. Orlov & Evgeniy M. Ozhegov, 2016. "Do sequel movies really earn more than non-sequels? Evidence from the US box office," ACEI Working Paper Series AWP-03-2016, Association for Cultural Economics International, revised Apr 2016.
    16. Paula Armstrong & Janca Steenkamp, 2008. "South African Trade Unions: an Overview for 1995 to 2005," Working Papers 10/2008, Stellenbosch University, Department of Economics.
    17. Christopher Coombs & Robert Newman & Richard Cebula & Mary White, 2015. "The Bargaining Power of Health Care Unions and Union Wage Premiums for Registered Nurses," Journal of Labor Research, Springer, vol. 36(4), pages 442-461, December.
    18. Joseph S. Tracy, 1986. "Seniority Rules and the Gains from Union Organization," NBER Working Papers 2039, National Bureau of Economic Research, Inc.
    19. Julien Picault, 2013. "Unionization and Labour-market Discrimination: A Closer Look at Non-unionized Workers," LABOUR, CEIS, vol. 27(3), pages 272-287, September.
    20. repec:spr:qualqt:v:51:y:2017:i:6:d:10.1007_s11135-016-0409-z is not listed on IDEAS
    21. Denis Y. Orlov & Evgeniy M. Ozhegov, 2015. "Estimating the Efficiency of Sequels in the Film Industry," HSE Working papers WP BRP 96/EC/2015, National Research University Higher School of Economics.
    22. Shoshana Neuman & Ronald Oaxaca, 2004. "Wage Decompositions with Selectivity-Corrected Wage Equations: A Methodological Note," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 2(1), pages 3-10, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:ilrrev:v:34:y:1980:i:1:p:24-34. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publications). General contact details of provider: http://www.ilr.cornell.edu .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.