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Wage Effects of Unionization and Occupational Licensing Coverage in the United States

Author

Listed:
  • Maury Gittleman

    () (U.S. Bureau of Labor Statistics)

  • Morris M. Kleiner

    () (Humphrey School of Public Affairs, Universityof Minnesota)

Abstract

Recent estimates in standard models of wage determination for both unionization and occupational licensing have shown wage effects that are similar across the two institutions. These cross-sectional estimates use specialized data sets, with small sample sizes, for the period 2006 through 2008. Our analysis examines the impact of unions and licensing coverage on wage determination using new data collected on licensing statutes that are then linked to longitudinal data from the National Longitudinal Survey of Youth (NLSY79) from 1979 to 2010. We develop several approaches, using both cross-sectional and longitudinal analyses, to measure the impact of these two labor market institutions on wage determination. Our estimates of the economic returns to union coverage are greater than those for licensing requirements.

Suggested Citation

  • Maury Gittleman & Morris M. Kleiner, 2013. "Wage Effects of Unionization and Occupational Licensing Coverage in the United States," Working Papers 464, U.S. Bureau of Labor Statistics.
  • Handle: RePEc:bls:wpaper:ec130040
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    References listed on IDEAS

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    1. Aigner, Dennis J., 1973. "Regression with a binary independent variable subject to errors of observation," Journal of Econometrics, Elsevier, vol. 1(1), pages 49-59, March.
    2. Morris M. Kleiner & Alan B. Krueger, 2010. "The Prevalence and Effects of Occupational Licensing," British Journal of Industrial Relations, London School of Economics, vol. 48(4), pages 676-687, December.
    3. David S. Lee & Alexandre Mas, 2012. "Long-Run Impacts of Unions on Firms: New Evidence from Financial Markets, 1961--1999," The Quarterly Journal of Economics, Oxford University Press, vol. 127(1), pages 333-378.
    4. Barry T. Hirsch, 2004. "Reconsidering Union Wage Effects: Surveying New Evidence on an Old Topic," Journal of Labor Research, Transaction Publishers, vol. 25(2), pages 233-266, April.
    5. Peter B. Meyer & Anastasiya M. Osborne, 2005. "Proposed Category System for 1960-2000 Census Occupations," Working Papers 383, U.S. Bureau of Labor Statistics.
    6. Maurizi, Alex, 1974. "Occupational Licensing and the Public Interest," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages 399-413, Part I, M.
    7. David Blanchflower & Alex Bryson, 2004. "The Union Wage Premium in the US and the UK," CEP Discussion Papers dp0612, Centre for Economic Performance, LSE.
    8. Mario Pagliero, 2010. "Licensing Exam Difficulty and Entry Salaries in the US Market for Lawyers," British Journal of Industrial Relations, London School of Economics, vol. 48(4), pages 726-739, December.
    9. Cynthia L. Estlund & Michael L. Wachter (ed.), 2012. "Research Handbook on the Economics of Labor and Employment Law," Books, Edward Elgar Publishing, number 13924.
    10. Bollinger, Christopher R., 1996. "Bounding mean regressions when a binary regressor is mismeasured," Journal of Econometrics, Elsevier, vol. 73(2), pages 387-399, August.
    11. Robert J. Thornton & Edward J. Timmons, 2013. "Licensing One of the World's Oldest Professions: Massage," Journal of Law and Economics, University of Chicago Press, vol. 56(2), pages 371-388.
    12. Carl Shapiro, 1986. "Investment, Moral Hazard, and Occupational Licensing," Review of Economic Studies, Oxford University Press, vol. 53(5), pages 843-862.
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    Citations

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    Cited by:

    1. repec:eee:irlaec:v:50:y:2017:i:c:p:50-59 is not listed on IDEAS
    2. Janna E. Johnson & Morris M. Kleiner, 2017. "Is Occupational Licensing a Barrier to Interstate Migration?," NBER Working Papers 24107, National Bureau of Economic Research, Inc.
    3. Dean Baker, 2016. "Working Paper: The Compensation of Highly Paid Professionals: How Much Is Rent?," CEPR Reports and Issue Briefs 2016-13, Center for Economic and Policy Research (CEPR).
    4. Yoon Sun Hur & Morris M. Kleiner & Yingchun Wang, 2017. "The Influence of Licensing Engineers on their Labor Market," NBER Chapters,in: U.S. Engineering in a Global Economy National Bureau of Economic Research, Inc.
    5. D. Mark Anderson & Ryan Brown & Kerwin Kofi Charles & Daniel I. Rees, 2016. "The Effect of Occupational Licensing on Consumer Welfare: Early Midwifery Laws and Maternal Mortality," NBER Working Papers 22456, National Bureau of Economic Research, Inc.
    6. Suyoun Han & Morris M. Kleiner, 2016. "Analyzing the Influence of Occupational Licensing Duration and Grandfathering on Labor Market Outcomes," NBER Working Papers 22810, National Bureau of Economic Research, Inc.
    7. MORIKAWA Masayuki, 2017. "Occupational Licenses and Labor Market Outcomes," Discussion papers 17078, Research Institute of Economy, Trade and Industry (RIETI).
    8. Kleiner, Morris M. & Gittleman, Maury & Klee, Mark, 2014. "Analyzing the Labor Market Outcomes of Occupational Licensing," Staff Report 504, Federal Reserve Bank of Minneapolis.
    9. repec:iza:izawol:journl:y:2017:n:392 is not listed on IDEAS
    10. repec:kap:regeco:v:52:y:2017:i:2:d:10.1007_s11149-017-9333-y is not listed on IDEAS
    11. Johnson, Janna & Kleiner, Morris M., 2017. "Is Occupational Licensing a Barrier to Interstate Migration?," Staff Report 561, Federal Reserve Bank of Minneapolis.
    12. repec:bla:indres:v:56:y:2017:i:2:p:351-381 is not listed on IDEAS

    More about this item

    Keywords

    Occupational Licensing; Unionization; Wage Effects;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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