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Wage Differentials, Bargaining Protocols, and Trade Unionism in Mid-Twentieth-Century American Labor Markets

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  • John Pencavel

Abstract

Income inequality in the United States has been lower in periods when trade unionism has been strong. Using observations on wages by occupation, by geography, and by gender in collective bargaining contracts from the 1940s to the 1970s, patterns in movements of wage differentials are revealed. As wages increased, some contracts maintained relative wage differentials constant, some maintained absolute differences in wages constant, others combined these two patterns, and some did not reveal an obvious pattern. The patterns persisted even as price inflation increased in the 1970s. The dominant pattern implies a reduction in inequality as usually measured.

Suggested Citation

  • John Pencavel, 2022. "Wage Differentials, Bargaining Protocols, and Trade Unionism in Mid-Twentieth-Century American Labor Markets," ILR Review, Cornell University, ILR School, vol. 75(1), pages 139-167, January.
    • Handle: RePEc:sae:ilrrev:v:75:y:2022:i:1:p:139-167
    DOI: 10.1177/0019793920928962
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    References listed on IDEAS

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