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Unions, Establishment Size, and Intra-Industry Threat Effects

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  • Michael Podgursky

Abstract

Using a sample of data on private-sector production workers from a May–June 1979 matched Current Population Survey, this study finds that whether a worker is covered by a union contract, and the proportion of an industry's production workers covered by union contracts, have significantly different effects on worker earnings across establishments of different size. The pattern of findings suggests that large nonunion employers tend to match the union wage scale at all levels of unionism in their industry; medium-size nonunion employers match the union scale only as the union presence in their industry looms large; and small nonunion employers maintain wages below the union rate at all levels of union organization of their industry.

Suggested Citation

  • Michael Podgursky, 1986. "Unions, Establishment Size, and Intra-Industry Threat Effects," ILR Review, Cornell University, ILR School, vol. 39(2), pages 277-284, January.
    • Handle: RePEc:sae:ilrrev:v:39:y:1986:i:2:p:277-284
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    Cited by:

    1. Demir, Gökay, 2023. "Labor Market Frictions and Spillover Effects from Publicly Announced Sectoral Minimum Wages," IZA Discussion Papers 16204, Institute of Labor Economics (IZA).
    2. David Neumark & Michael L. Wachter, 1992. "Union Threat Effects and Nonunion Industry Wage Differentials," NBER Working Papers 4046, National Bureau of Economic Research, Inc.
    3. Mark Wooden, 2001. "Union Wage Effects in the Presence of Enterprise Bargaining," The Economic Record, The Economic Society of Australia, vol. 77(236), pages 1-18, March.
    4. William T. Dickens & Lawrence F. Katz, 1986. "Interindustry Wage Differences and Industry Characteristics," NBER Working Papers 2014, National Bureau of Economic Research, Inc.
    5. Demir, Gökay, 2022. "Labor market frictions and spillover effects from publicly announced sectoral minimum wages," Ruhr Economic Papers 985, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    6. Niamh Brennan & Patrick Nolan, 1998. "Employment and remuneration of Irish chartered accountants : evidence of gender differences," Open Access publications 10197/2910, Research Repository, University College Dublin.
    7. Matthew J. Bidwell, 2013. "What Happened to Long-Term Employment? The Role of Worker Power and Environmental Turbulence in Explaining Declines in Worker Tenure," Organization Science, INFORMS, vol. 24(4), pages 1061-1082, August.
    8. Niamh Brennan & Patrick Nolan, 1998. "Employment and remuneration of Irish chartered accountants: evidence of," European Accounting Review, Taylor & Francis Journals, vol. 7(2), pages 237-255.
    9. Kevin E. Henrickson & Wesley W. Wilson, 2008. "Compensation, Unionization, and Deregulation in the Motor Carrier Industry," Journal of Law and Economics, University of Chicago Press, vol. 51(1), pages 153-177, February.
    10. Vanessa V Tinsley, 2003. "Firms and Layoffs: The Impact of Unionization on Involuntary Job Loss," Working Papers 03-09, Center for Economic Studies, U.S. Census Bureau.
    11. Albaek, Karsten & Arai, Mahmood & Asplund, Rita & Barth, Erling & Strojer Madsen, Erik, 1998. "Measuring wage effects of plant size," Labour Economics, Elsevier, vol. 5(4), pages 425-448, December.

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