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Does Union Membership Matter? The Effect of Establishment Union Density on the Union Wage Differential

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  • Reilly, Kevin T

Abstract

This paper examines the union's effect on wages using a unique set of variables: dummy variables for the density of unionization in the establishment for which the individual works. The results suggest that after controlling for establishment union density a union member wage gain is only observed for the lowest level, the 1% to 25% density range. For the 26% or greater establishment union density ranges the union's effect on wages is for all individuals working in the establishment and not just union members. The wage gain is 20% for both the establishment union density ranges of 26% to 50% and 51% to 75%. Individuals working for an establishment with a greater than 75% establishment unioni density achieve a wage gain of 64%. Copyright 1996 by MIT Press.

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  • Reilly, Kevin T, 1996. "Does Union Membership Matter? The Effect of Establishment Union Density on the Union Wage Differential," The Review of Economics and Statistics, MIT Press, vol. 78(3), pages 547-557, August.
  • Handle: RePEc:tpr:restat:v:78:y:1996:i:3:p:547-57
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    Cited by:

    1. Andrews, Martyn J. & Stewart, Mark B. & Swaffield, Joanna K. & Upward, Richard, 1998. "The estimation of union wage differentials and the impact of methodological choices," Labour Economics, Elsevier, vol. 5(4), pages 449-474, December.
    2. Osberg, Lars, 1995. "Le chainon manquant : donnees sur l'element demande des marches du travail," Direction des etudes analytiques : documents de recherche 1995077f, Statistics Canada, Direction des etudes analytiques.
    3. Mathieu Bunel & Gilles Raveaud, 2011. "Union Membership does not pay," Working Papers halshs-00868217, HAL.
    4. Manquilef-Bächler, Alejandra A. & Arulampalam, Wiji & Smith, Jennifer C., 2009. "Differences in Decline: Quantile Regression Analysis of Union Wage Differentials in the United Kingdom, 1991-2003," IZA Discussion Papers 4138, Institute for the Study of Labor (IZA).
    5. Mathieu Bunel & Gilles Raveaud, 2012. "Union Membership does not pay: Evidence from recent French Micro Data," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201232, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
    6. Tushar Kanti Nandi, 2006. "Employee Participation and Wages: An Empirical Investigation with Selectivity Correction," Department of Economics University of Siena 483, Department of Economics, University of Siena.
    7. Osberg, Lars, 1995. "The Missing Link - Data on the Demand Side of Labour Markets," Analytical Studies Branch Research Paper Series 1995077e, Statistics Canada, Analytical Studies Branch.
    8. Ines Blohm & Sebastian Briel & Martina Pauly & Uta Heumann & Claudia Brülin, 2006. "Comparative Human Resource Management in the European Banking Sector: The Effect of Collective Bargaining Power on Working Conditions," LIS Working papers 450, LIS Cross-National Data Center in Luxembourg.

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