Union Membership does not pay: Evidence from recent French Micro Data
We used a French employer–employee representative survey to estimate, within private firms covered by union contracts, the union member wage premium. Our estimates are based on several methods: ordinary least squares with averaged individual characteristics at the workplace level, the propensity score and separated equations. We found no wage penalty for free riders, except for blue collar and office workers. But even for these workers, the estimated wage premium is very small. Globally, in France, union membership does not seem to be motivated by monetary raisons. This situation could explain the low level of union membership observed.
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