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Union Wage Effects in the Presence of Enterprise Bargaining

  • Mark Wooden

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

Previous research on union wage effects has underestimated the potential for unions to raise member wages since the data used do not enable differences across bargaining units to be properly accounted for. This study addresses this deficiency by utilising matched employer-employee data which permit workplace-specific union wage effects to be identified. Results from the estimation of wage equations indicate that while there is only a very small intra-workplace union wage effect, differences across workplaces are considerable. This differential, however, only exists at workplaces where there is substantial coverage by collective agreements.

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File URL: http://www.melbourneinstitute.com/downloads/working_paper_series/wp2000n07.pdf
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Paper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number wp2000n07.

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Length: 35 pages
Date of creation: Apr 2000
Date of revision:
Handle: RePEc:iae:iaewps:wp2000n07
Contact details of provider: Postal: Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Victoria 3010 Australia
Phone: +61 3 8344 2100
Fax: +61 3 8344 2111
Web page: http://www.melbourneinstitute.com/
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  1. Christie, Virginia, 1992. "Union Wage Effects and the Probability of Union Membership," The Economic Record, The Economic Society of Australia, vol. 68(200), pages 43-56, March.
  2. Rene Morissette, 1993. "Canadian Jobs and Firm Size: Do Smaller Firms Pay Less?," Canadian Journal of Economics, Canadian Economics Association, vol. 26(1), pages 159-74, February.
  3. Mellow, Wesley, 1982. "Employer Size and Wages," The Review of Economics and Statistics, MIT Press, vol. 64(3), pages 495-501, August.
  4. Michael Podgursky, 1986. "Unions, establishment size, and intra-industry threat effects," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 39(2), pages 277-284, January.
  5. Aitken, B. & Harrison, A. & Lipsey, R.E., 1995. "Wages and Foreign Ownership: A Comparative Study of Mexico, Venezuela, and the United States," Papers 95-21, Columbia - Graduate School of Business.
  6. Kenneth R Troske & William J Carrington, 1996. "Sex Segregation in U.S. Manufacturing," Working Papers 96-4, Center for Economic Studies, U.S. Census Bureau.
  7. Noel Gaston & Daniel Trefler, 1994. "Protection, Trade, and Wages: Evidence from U.S. Manufacturing," ILR Review, Cornell University, ILR School, vol. 47(4), pages 574-593, July.
  8. Charles Brown & James L. Medoff, 1989. "The Employer Size-Wage Effect," NBER Working Papers 2870, National Bureau of Economic Research, Inc.
  9. Miller, Paul & Mulvey, Charles, 1992. "What Do Australian Unions Do?," Institute for Research on Labor and Employment, Working Paper Series qt7rk2x5x2, Institute of Industrial Relations, UC Berkeley.
  10. Miller, Paul & Mulvey, Charles, 1996. "Unions, Firm Size and Wages," The Economic Record, The Economic Society of Australia, vol. 72(217), pages 138-53, June.
  11. Hawke, Anne & Wooden, Mark, 1998. "The Changing Face of Australian Industrial Relations: A Survey," The Economic Record, The Economic Society of Australia, vol. 74(224), pages 74-88, March.
  12. Stewart, Mark B, 1995. "Union Wage Differentials in an Era of Declining Unionization," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(2), pages 143-66, May.
  13. Wooden, Mark & Bora, Bijit, 1999. "Workplace Characteristics and Their Effects on Wages: Australian Evidence," Australian Economic Papers, Wiley Blackwell, vol. 38(3), pages 276-89, September.
  14. Steven Globerman & John C. Ries & Ilan Vertinsky, 1994. "The Economic Performance of Foreign Affiliates in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 27(1), pages 143-56, February.
  15. Idson, Todd L & Feaster, Daniel J, 1990. "A Selectivity Model of Employer-Size Wage Differentials," Journal of Labor Economics, University of Chicago Press, vol. 8(1), pages 99-122, January.
  16. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May.
  17. Stewart, Mark B, 1986. "Collective Bargaining Arrangements Closed Shops and Relative Pay," The Warwick Economics Research Paper Series (TWERPS) 273, University of Warwick, Department of Economics.
  18. Garen, John E, 1985. "Worker Heterogeneity, Job Screening, and Firm Size," Journal of Political Economy, University of Chicago Press, vol. 93(4), pages 715-39, August.
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