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Wage Effects of Unionization and Occupational Licensing Coverage in the United States

  • Maury Gittleman
  • Morris M. Kleiner

Recent estimates in standard models of wage determination for both unionization and occupational licensing have shown wage effects that are similar across the two institutions. These cross-sectional estimates use specialized data sets, with small sample sizes, for the period 2006 through 2008. Our analysis examines the impact of unions and licensing coverage on wage determination using new data collected on licensing statutes that are then linked to longitudinal data from the National Longitudinal Survey of Youth (NLSY79) from 1979 to 2010. We develop several approaches, using both cross-sectional and longitudinal analyses, to measure the impact of these two labor market institutions on wage determination. Our estimates of the economic returns to union coverage are greater than those for licensing requirements.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 19061.

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Date of creation: May 2013
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Handle: RePEc:nbr:nberwo:19061
Note: IO LE LS
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  1. David G. Blanchflower & Alex Bryson, 2004. "The union wage premium in the US and the UK," LSE Research Online Documents on Economics 19987, London School of Economics and Political Science, LSE Library.
  2. Morris M. Kleiner & Alan B. Krueger, 2010. "The Prevalence and Effects of Occupational Licensing," British Journal of Industrial Relations, London School of Economics, vol. 48(4), pages 676-687, December.
  3. Barry T. Hirsch, 2004. "Reconsidering Union Wage Effects: Surveying New Evidence on an Old Topic," Journal of Labor Research, Transaction Publishers, vol. 25(2), pages 233-266, April.
  4. Peter B. Meyer & Anastasiya M. Osborne, 2005. "Proposed Category System for 1960-2000 Census Occupations," Working Papers 383, U.S. Bureau of Labor Statistics.
  5. David S. Lee & Alexandre Mas, 2012. "Long-Run Impacts of Unions on Firms: New Evidence from Financial Markets, 1961--1999," The Quarterly Journal of Economics, Oxford University Press, vol. 127(1), pages 333-378.
  6. Aigner, Dennis J., 1973. "Regression with a binary independent variable subject to errors of observation," Journal of Econometrics, Elsevier, vol. 1(1), pages 49-59, March.
  7. Shapiro, Carl, 1986. "Investment, Moral Hazard, and Occupational Licensing," Review of Economic Studies, Wiley Blackwell, vol. 53(5), pages 843-62, October.
  8. Robert J. Thornton & Edward J. Timmons, 2013. "Licensing One of the World’s Oldest Professions: Massage," Journal of Law and Economics, University of Chicago Press, vol. 56(2), pages 371 - 388.
  9. Mario Pagliero, 2010. "Licensing Exam Difficulty and Entry Salaries in the US Market for Lawyers," British Journal of Industrial Relations, London School of Economics, vol. 48(4), pages 726-739, December.
  10. Bollinger, Christopher R., 1996. "Bounding mean regressions when a binary regressor is mismeasured," Journal of Econometrics, Elsevier, vol. 73(2), pages 387-399, August.
  11. Cynthia L. Estlund & Michael L. Wachter (ed.), 2012. "Research Handbook on the Economics of Labor and Employment Law," Books, Edward Elgar, number 13924.
  12. Maurizi, Alex, 1974. "Occupational Licensing and the Public Interest," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages 399-413, Part I, M.
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