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The Size Of The Union Membership Wage Premium In Britain's Private Sector

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  • Alex Bryson

Abstract

The paper estimates the union wage premium in Britain’s private sector in 1998, after nearly two decades of union decline. It examines the performance of the linear estimator alongside a semi-parametric technique (propensity score matching (PSM)) – hitherto unused in the wage premium literature - which shares the same identifying assumption, namely that selection into membership is captured with observable data. Results using the two techniques are compared, and reasons for differences in results are identified and discussed. By altering the information set entering estimation the paper shows the sensitivity of OLS and PSM results to data quality.
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  • Alex Bryson, 2004. "The Size Of The Union Membership Wage Premium In Britain's Private Sector," Royal Economic Society Annual Conference 2004 22, Royal Economic Society.
    • Handle: RePEc:ecj:ac2004:22
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    References listed on IDEAS

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    1. Freeman, Richard B, 1984. "Longitudinal Analyses of the Effects of Trade Unions," Journal of Labor Economics, University of Chicago Press, vol. 2(1), pages 1-26, January.
    2. James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(4), pages 605-654.
    3. Forth, John & Millward, Neil, 2002. "Union effects on pay levels in Britain," Labour Economics, Elsevier, vol. 9(4), pages 547-561, September.
    4. John M. Abowd & Francis Kramarz & David N. Margolis, 1999. "High Wage Workers and High Wage Firms," Econometrica, Econometric Society, vol. 67(2), pages 251-334, March.
    5. 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.
    6. O. Ashenfelter & D. Card (ed.), 1999. "Handbook of Labor Economics," Handbook of Labor Economics, Elsevier, edition 1, volume 3, number 3.
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    Cited by:

    1. David Blanchflower & Alex Bryson, 2004. "The Union Wage Premium in the US and the UK," CEP Discussion Papers dp0612, Centre for Economic Performance, LSE.
    2. Alex Bryson & John Forth & Simon Kirby, 2005. "High‐Involvement Management Practices, Trade Union Representation And Workplace Performance In Britain," Scottish Journal of Political Economy, Scottish Economic Society, vol. 52(3), pages 451-491, July.

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