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Assymetries in Union Relative Wage Effects in Ghanian Manufacturing - An analysis Applying Quantile Regressions

Author

Listed:
  • Blunch, Niels-Hugo

    (Centre for Labour Market and Social Research, Aarhus School of Business)

  • Verner, Dorthe

    (Centre for Labour Market and Social Research, Aarhus School of Business)

Abstract

This paper analyzes the earnings determinants in the Ghanian manufacturing industries, focussing on the impact of unions in terms of the so-called "union relative wage effect" and the possible asymmetries of this impact across the earnings distribution. We find evidence of a union relative wage effect ocurring via two distinct channels. First, we find a direct effect through individual union membership. This is the standard "union premium" well known from the empirical litterature on unions. Second, we find evidence of a spillover effect to non-union members. In addition, we find evidence of an additional union effect coming through via firm-specific training. We confirm our conjecture of an asymmetry in the union relative wage effect, unions mainly benefiting the lower end of the wage distribution. This is in line with previous research, which generally finds that unions increase income equality and reduce wage discrimination. Evaluating the non-union sub-sample using the estimated union wage structure further establishes the presence of structural differences between the union and non-union segments of the Ghanian manufacturing industry in that for given characteristics, a worker in the union sector earns more than a worker in the non-union sector.

Suggested Citation

  • Blunch, Niels-Hugo & Verner, Dorthe, 2001. "Assymetries in Union Relative Wage Effects in Ghanian Manufacturing - An analysis Applying Quantile Regressions," CLS Working Papers 01-7, University of Aarhus, Aarhus School of Business, Centre for Labour Market and Social Research.
  • Handle: RePEc:hhs:aarcls:2001_007
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    References listed on IDEAS

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    More about this item

    Keywords

    Africa; Ghana; Human capital; Union relative wage effect; Quantile regression;

    JEL classification:

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

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