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Unions, Wages, and Skills

Author

Listed:
  • Barry T. Hirsch
  • Edward J. Schumacher

Abstract

Studies uniformly conclude that union wage effects are largest for workers with low measured skills. Longitudinal analysis using 1989/90-1994/95 Current Population Survey matched panels produces union premium estimates equivalent across skill groups, following appropriate sample restrictions and control for worker-specific skills. Evidence from the National Longitudinal Survey of Youth on aptitude scores confirms that union workers with high measured skills have relatively low unmeasured skills. Differential selection by skill class and skill homogeneity in union workplaces results from employer and employee sorting in response to wage standardization, union organizing where skills are homogeneous, and unionized employers' reluctance to hire the most as well as least able workers.

Suggested Citation

  • Barry T. Hirsch & Edward J. Schumacher, 1998. "Unions, Wages, and Skills," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 201-219.
  • Handle: RePEc:uwp:jhriss:v:33:y:1998:i:1:p:201-219
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    Citations

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    Cited by:

    1. Walsh, Frank, 2013. "The union wage effect and ability bias: Evidence from Ireland," Economics Letters, Elsevier, vol. 119(3), pages 296-298.
    2. Gittleman, Maury & Pierce, Brooks, 2007. "New estimates of union wage effects in the U.S," Economics Letters, Elsevier, vol. 95(2), pages 198-202, May.
    3. Edward J. Schumacher, "undated". "What Explains Union Membership Contract Coverage Wage Differentials?," Working Papers 9719, East Carolina University, Department of Economics.
    4. Lixin Cai & C. Jeffrey Waddoups, 2011. "Union Wage Effects in Australia: Evidence from Panel Data," British Journal of Industrial Relations, London School of Economics, vol. 49(Supplemen), pages 279-305, July.
    5. Barry T. Hirsch, 2008. "Sluggish Institutions in a Dynamic World: Can Unions and Industrial Competition Coexist?," Journal of Economic Perspectives, American Economic Association, vol. 22(1), pages 153-176, Winter.
    6. Yi, Hongtao, 2014. "Green businesses in a clean energy economy: Analyzing drivers of green business growth in U.S. states," Energy, Elsevier, vol. 68(C), pages 922-929.
    7. Francine D. Blau & Lawrence M. Kahn, 2005. "Do Cognitive Test Scores Explain Higher U.S. Wage Inequality?," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 184-193, February.
    8. repec:kap:iaecre:v:12:y:2006:i:3:p:342-357 is not listed on IDEAS
    9. Aaron J. Sojourner & Brigham R. Frandsen & Robert J. Town & David C. Grabowski & Min M. Chen, 2015. "Impacts of Unionization on Quality and Productivity," ILR Review, Cornell University, ILR School, vol. 68(4), pages 771-806, August.
    10. Barry T. Hirsch & Edward J. Schumacher, 2004. "Match Bias in Wage Gap Estimates Due to Earnings Imputation," Journal of Labor Economics, University of Chicago Press, vol. 22(3), pages 689-722, July.
    11. Barry T. Hirsch & Edward J. Schumacher, "undated". "Union Wages, Rents, and Skills in Health Care Labor Markets," Working Papers 9721, East Carolina University, Department of Economics.
    12. Richard McGregory & James Peoples, 2013. "Compensation of Foreign and Domestic Nurses in the US," Journal of Labor Research, Springer, vol. 34(2), pages 203-223, June.
    13. Fernando Rios-Avila & Barry T. Hirsch, 2014. "Unions, Wage Gaps, and Wage Dispersion: New Evidence from the Americas," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 53(1), pages 1-27, January.
    14. Rudy Fichtenbaum, 2006. "Labour market segmentation and union wage gaps," Review of Social Economy, Taylor & Francis Journals, vol. 64(3), pages 387-420.
    15. Blackburn, McKinley L., 2007. "Estimating wage differentials without logarithms," Labour Economics, Elsevier, vol. 14(1), pages 73-98, January.
    16. David G. Blanchflower & Alex Bryson, 2003. "What Effect do Unions Have on Wages Now and Would 'What Do Unions Do' Be Surprised?," NBER Working Papers 9973, National Bureau of Economic Research, Inc.
    17. Barry T. Hirsch & Edward J. Schumacher, 2001. "Private Sector Union Density and the Wage Premium: Past, Present, and Future ," Journal of Labor Research, Transaction Publishers, vol. 22(3), pages 487-518, July.
    18. Cynthia Bansak & Steven Raphael, 2006. "Have Employment Relationships in the United States Become Less Stable?," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 12(3), pages 342-357, August.
    19. Md. Rabiul Islam & Jakob Brochner Madsen & Hristos Doucouliagos, 2016. "Does Inequality Constrain the Power to Tax? Evidence from the OECD," Monash Economics Working Papers 29-16, Monash University, Department of Economics.
    20. Barry T. Hirsch & Edward J. Schumacher, 2000. "“Earnings Imputation and Bias in Wage Gap Estimates,”," Working Papers 0003, East Carolina University, Department of Economics.
    21. David Card & Thomas Lemieux & W. Craig Riddell, 2003. "Unionization and Wage Inequality: A Comparative Study of the U.S, the U.K., and Canada," NBER Working Papers 9473, National Bureau of Economic Research, Inc.
    22. Açıkgöz, Ömer Tuğrul & Kaymak, Barış, 2014. "The rising skill premium and deunionization," Journal of Monetary Economics, Elsevier, vol. 63(C), pages 37-50.

    More about this item

    JEL classification:

    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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