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The Union Wage Mark-up for Immigrants in the United States

Author

Listed:
  • Laszlo Goerke

    (Institute for Labour Law and Industrial Relations in the European Union (IAAEU), Trier University)

  • Cinzia Rienzo

    (Brighton University and GLO School of Business and Law)

Abstract

Using data from the Current Population Survey (CPS) for 1994-2023, we show that the union wage mark-up for immigrants averages about 0.1 log points, 0.04 log-points less than that for natives. Therefore, unionization is less beneficial for immigrants than natives in the United States. The difference is most pronounced for males and low-skilled blue-collar workers. It cannot be observed for white-collar workers, individuals born in Mexico, and second-generation immigrants. An IVapproach indicates that the wage effects can be interpreted causally. Our results suggest that differences in the union wage mark-up may be due to disparities in bargaining power or result from discriminatory trade union objectives. Our findings point to the importance of labor market institutions in shaping the economic assimilation of immigrants.

Suggested Citation

  • Laszlo Goerke & Cinzia Rienzo, 2025. "The Union Wage Mark-up for Immigrants in the United States," IAAEU Discussion Papers 202501, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
    • Handle: RePEc:iaa:dpaper:202501
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    File URL: https://www.iaaeu.de/images/DiscussionPaper/2025_01.pdf
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    More about this item

    Keywords

    Immigrants; Union objectives; Union wage mark-up; United States;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General

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