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Union Effects in Low-Wage Services: Evidence from Canadian Childcare

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  • Gordon Cleveland
  • Morley Gunderson
  • Douglas Hyatt

Abstract

Empirical evidence presented in this paper, based on survey data for Canadian childcare workers in 1991, contradicts most stereotypes of the childcare labor market. Although childcare labor was low-wage, the authors find that the union impact on wages (15%) and fringe benefits was in line with union effects found in other, better-compensated work, and they find substantial returns to education, occupational level, and firm-specific experience. The returns to the skill-related attributes were blunted somewhat in the union sector, except where such returns stood to benefit the median union voter. The findings suggest that monetary incentives can be used to encourage improvements in the education, experience, and skill acquisition of childcare workers. Unions can improve wages and benefits for childcare workers just as they can for most other workers, suggesting the viability of union organizing in this sector despite the traditional barriers to organizing low-wage service sector workers in small firms.

Suggested Citation

  • Gordon Cleveland & Morley Gunderson & Douglas Hyatt, 2003. "Union Effects in Low-Wage Services: Evidence from Canadian Childcare," ILR Review, Cornell University, ILR School, vol. 56(2), pages 295-305, January.
    • Handle: RePEc:sae:ilrrev:v:56:y:2003:i:2:p:295-305
    DOI: 10.1177/001979390305600205
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    References listed on IDEAS

    as
    1. David M. Rabban, 1991. "Is Unionization Compatible with Professionalism?," ILR Review, Cornell University, ILR School, vol. 45(1), pages 97-112, October.
    2. Preston, Anne E, 1988. "The Effects of Property Rights on Labor Costs of Nonprofit Firms: An Application to the Day Care Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 36(3), pages 337-350, March.
    3. Blau, David M, 1993. "The Supply of Child Care Labor," Journal of Labor Economics, University of Chicago Press, vol. 11(2), pages 324-347, April.
    4. Gordon H. Cleveland & Douglas E. Hyatt, 2002. "Child care workers' wages: New evidence on returns to education, experience, job tenure and auspice," Journal of Population Economics, Springer;European Society for Population Economics, vol. 15(3), pages 575-597.
    5. repec:eee:labchp:v:2:y:1986:i:c:p:1139-1181 is not listed on IDEAS
    6. Gordon Cleveland & Morley Gunderson & Douglas Hyatt, 1996. "Child Care Costs and the Employment Decision of Women: Canadian Evidence," Canadian Journal of Economics, Canadian Economics Association, vol. 29(1), pages 132-151, February.
    7. Linda Babcock & John Engberg, 1999. "Bargaining Unit Composition and the Returns to Education and Tenure," ILR Review, Cornell University, ILR School, vol. 52(2), pages 163-178, January.
    8. Kate Bronfenbrenner, 1997. "The Role of Union Strategies in NLRB Certification Elections," ILR Review, Cornell University, ILR School, vol. 50(2), pages 195-212, January.
    9. Peter Kuhn, 1998. "Innis Lecture: Unions and the Economy: What We Know; What We Should Know," Canadian Journal of Economics, Canadian Economics Association, vol. 31(5), pages 1033-1056, November.
    10. Bob Mason & Peter Bain, 1993. "The Determinants of Trade Union Membership in Britain: A Survey of the Literature," ILR Review, Cornell University, ILR School, vol. 46(2), pages 332-351, January.
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    Cited by:

    1. Tingting Zhang, 2019. "Effects of Occupational Licensing and Unions on Labour Market Earnings in Canada," British Journal of Industrial Relations, London School of Economics, vol. 57(4), pages 791-817, December.
    2. Brändle, Tobias, 2024. "Unions and Collective Bargaining: The Influence on Wages, Employment and Firm Survival," GLO Discussion Paper Series 1457, Global Labor Organization (GLO).

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