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Unions, Wage Gaps, and Wage Dispersion: New Evidence from the Americas

  • Rios-Avila, Fernando

    ()

    (Georgia State University)

  • Hirsch, Barry

    ()

    (Georgia State University)

Using a common methodology, the effects of unions on wage levels and wage dispersion are estimated for two neighboring countries, Bolivia and Chile, and for the U.S. The analysis shows that unions have broadly similar effects on the wage distribution within these three economies. The findings suggest that the political economy of unions, coupled with market constraints on labor costs, produce commonality in union wage effects that transcend other economic and institutional differences.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6757.

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Length: 34 pages
Date of creation: Jul 2012
Date of revision:
Publication status: published in: Industrial Relations, 2014, 53 (1), 1-27.
Handle: RePEc:iza:izadps:dp6757
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  1. Lucas Ronconi, 2012. "Globalization, Domestic Institutions, and Enforcement of Labor Law: Evidence from Latin America," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 51(1), pages 89-105, 01.
  2. Wessels, Walter J, 1994. "Do Unionized Firms Hire Better Workers?," Economic Inquiry, Western Economic Association International, vol. 32(4), pages 616-29, October.
  3. Even, William E. & Macpherson, David A., 2009. "Is Bigger Still Better? The Decline of the Wage Premium at Large Firms," IZA Discussion Papers 4082, Institute for the Study of Labor (IZA).
  4. James T. Bennett & Bruce E. Kaufman, 2004. "What Do Unions Do?: A Twenty-Year Perspective," Journal of Labor Research, Transaction Publishers, vol. 25(3), pages 339-350, July.
  5. Óscar Landerretche & Nicolás Lillo & Esteban Puentes, 2011. "The Union Effect on Wages in Chile: A Two-Stage Approach Using Panel Data," Working Papers wp332, University of Chile, Department of Economics.
  6. David Card & Thomas Lemieux & W. Craig Riddell, 2004. "Unions and Wage Inequality," Journal of Labor Research, Transaction Publishers, vol. 25(4), pages 519-562, October.
  7. Arbache, Jorge Saba & Carneiro, Francisco Galrao, 1999. "Unions and Interindustry Wage Differentials," World Development, Elsevier, vol. 27(10), pages 1875-1883, October.
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