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Union Wage Differentials for Covered Members and Nonmembers in Great Britain

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  • ANDREW K. G. HILDRETH

Abstract

I present the first longitudinal estimates of covered union member and covered nonmember wage differentials in Great Britain. Cross-sectional estimates show that covered union members receive a premium of about 10 percent over other workers, but covered nonmembers have no significant wage differential. Longitudinal estimates that accounted for fixed effects, selectivity, and measurement error indicated that OLS estimates are downward biased. The "true" union wage differential is likely about 30-35 percent. There is a large negative selection effect to union membership. No robust estimate could be found for covered nonmembers.

Suggested Citation

  • Andrew K. G. Hildreth, 2000. "Union Wage Differentials for Covered Members and Nonmembers in Great Britain," Journal of Labor Research, Transaction Publishers, vol. 21(1), pages 133-147, January.
  • Handle: RePEc:tra:jlabre:v:21:y:2000:i:1:p:133-147
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    References listed on IDEAS

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    Cited by:

    1. John W. Budd & Karen Mumford, 2004. "Trade Unions and Family-Friendly Policies in Britain," ILR Review, Cornell University, ILR School, vol. 57(2), pages 204-222, January.
    2. Koevoets, Wim, 2007. "Union wage premiums in Great Britain: Coverage or membership?," Labour Economics, Elsevier, vol. 14(1), pages 53-71, January.
    3. Goerke, Laszlo & Pannenberg, Markus, 2015. "Trade union membership and sickness absence: Evidence from a sick pay reform," Labour Economics, Elsevier, vol. 33(C), pages 13-25.
    4. Alejandro Donado, 2015. "Why Do Unionized Workers Have More Nonfatal Occupational Injuries?," ILR Review, Cornell University, ILR School, vol. 68(1), pages 153-183, January.
    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. Goerke, Laszlo & Pannenberg, Markus, 2011. "Trade union membership and dismissals," Labour Economics, Elsevier, vol. 18(6), pages 810-821.

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