Assymetries in Union Relative Wage Effects in Ghanian Manufacturing - An analysis Applying Quantile Regressions
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.
|Date of creation:||01 Mar 2001|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +45 89 48 66 88
Fax: + 45 86 15 01 88
Web page: http://www.cls.dk
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- T. Paul Schultz & Germano Mwabu, 1998.
"Labor unions and the distribution of wages and employment in South Africa,"
Industrial and Labor Relations Review,
ILR Review, Cornell University, ILR School, vol. 51(4), pages 680-703, July.
- Schultz, T.P. & Mwabu, G., 1997. "Labor Unions and the Distribution of Wages and Employment in South Africa," Papers 776, Yale - Economic Growth Center.
- Nelson, Joan M, 1991. "Organized Labor, Politics, and Labor Market Flexibility in Developing Countries," World Bank Research Observer, World Bank Group, vol. 6(1), pages 37-56, January.
- Velenchik, Ann D., 1997.
"Government intervention, efficiency wages, and the employer size wage effect in Zimbabwe,"
Journal of Development Economics,
Elsevier, vol. 53(2), pages 305-338, August.
- Velenchik, A.D., 1995. "Government Intervention, Efficiency Wages, and the Employer-Size Wage Effects in Zimbabwe," Papers 95-09, Wellesley College - Department of Economics.
- Halvorsen, Robert & Palmquist, Raymond, 1980. "The Interpretation of Dummy Variables in Semilogarithmic Equations," American Economic Review, American Economic Association, vol. 70(3), pages 474-75, June.
- Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
- Horton, Susan & Kanbur, Ravi & Mazumdar, Dipak, 1991. "Labor markets in an era of adjustment : an overview," Policy Research Working Paper Series 694, The World Bank.
- Maloney, William F. & Pontual Ribeiro, Eduardo, 1999. "Efficiency wage and union effects in labor demand and wage structure in Mexico - An application of quantile analysis," Policy Research Working Paper Series 2131, The World Bank.
- Panagides, Alexis & Patrinos, Harry Anthony & DEC, 1994. "Union - nonunion wage differentials in the developing world : a case study of Mexico," Policy Research Working Paper Series 1269, The World Bank.
- Moshe Buchinsky, 1998. "Recent Advances in Quantile Regression Models: A Practical Guideline for Empirical Research," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 88-126.
- Buchinsky, Moshe, 1995. "Estimating the asymptotic covariance matrix for quantile regression models a Monte Carlo study," Journal of Econometrics, Elsevier, vol. 68(2), pages 303-338, August.
- T. Paul Schultz & Germano Mwabu, 1998. "Labor Unions and the Distribution of Wages and Employment in South Africa," ILR Review, Cornell University, ILR School, vol. 51(4), pages 680-703, July.
- Booth, Alison L & Chatterji, Monojit, 1998. "Unions and Efficient Training," Economic Journal, Royal Economic Society, vol. 108(447), pages 328-43, March.
- Rama, Martin, 1998. "Wage misalignment in CFA countries: are labor market policies to blame?," Policy Research Working Paper Series 1873, The World Bank.
- Standing, Guy, 1992. "Do Unions Impede or Accelerate Structural Adjustment? Industrial versus Company Unions in an Industrialising Labour Market," Cambridge Journal of Economics, Oxford University Press, vol. 16(3), pages 327-54, September.
- Booth, Alison L & Francesconi, Marco & Zoega, Gylfi, 1999. "Training, Rent-Sharing and Unions," CEPR Discussion Papers 2200, C.E.P.R. Discussion Papers.
- Pencavel, John, 1995. "The role of labor unions in fostering economic development," Policy Research Working Paper Series 1469, The World Bank.
When requesting a correction, please mention this item's handle: RePEc:hhs:aarcls:2001_007. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Helle Vinbaek Stenholt)
If references are entirely missing, you can add them using this form.