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Union - nonunion wage differentials in the developing world : a case study of Mexico

Author

Listed:
  • Panagides, Alexis
  • Patrinos, Harry Anthony
  • DEC

Abstract

Union-nonunion wage differentials have been extensively studied by labor economists, but for lack of data on the developing world the study has been confined largely to the industrial world. This paper is one of the first attempts to empirically examine those differentials in a developing country. The authors find that union-nonunion wage differentials in Mexico have many of the same patterns as those in industrial nations. But there are marked differences. Based on a household survey in 1989, the authors find that: (i) overall, the union-nonunion wage gap is 10.4 percent; (ii) unions have a positive impact on the earnings of employed women and indigenous people; and (iii) organized labor in Mexico's northern states is considerably weaker in collective bargaining strength than it is elsewhere in Mexico.

Suggested Citation

  • Panagides, Alexis & Patrinos, Harry Anthony & DEC, 1994. "Union - nonunion wage differentials in the developing world : a case study of Mexico," Policy Research Working Paper Series 1269, The World Bank.
  • Handle: RePEc:wbk:wbrwps:1269
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    References listed on IDEAS

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    1. Patrinos, Harry Anthony & Sakellariou, Chris N., 1992. "North American Indians in the Canadian labour market: A decomposition of wage differentials," Economics of Education Review, Elsevier, vol. 11(3), pages 257-266, September.
    2. Freeman, Richard B, 1993. "Labor Markets and Institutions in Economic Development," American Economic Review, American Economic Association, vol. 83(2), pages 403-408, May.
    3. P. G. Moll, 1993. "Black South African Unions: Relative Wage Effects in International Perspective," ILR Review, Cornell University, ILR School, vol. 46(2), pages 245-261, January.
    4. Horton, Susan & Kanbur, Ravi & Mazumdar, Dipak, 1991. "Labor markets in an era of adjustment : an overview," Policy Research Working Paper Series 694, The World Bank.
    5. Lee, Lung-Fei, 1978. "Unionism and Wage Rates: A Simultaneous Equations Model with Qualitative and Limited Dependent Variables," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(2), pages 415-433, June.
    6. Robinson, Chris, 1989. "Union Endogeneity and Self-selection," Journal of Labor Economics, University of Chicago Press, vol. 7(1), pages 106-112, January.
    7. Duncan, Gregory M & Leigh, Duane E, 1985. "The Endogeneity of Union Status: An Empirical Test," Journal of Labor Economics, University of Chicago Press, vol. 3(3), pages 385-402, July.
    8. Nelson, Joan M, 1991. "Organized Labor, Politics, and Labor Market Flexibility in Developing Countries," World Bank Research Observer, World Bank Group, vol. 6(1), pages 37-56, January.
    9. Main, Brian G M & Reilly, Barry, 1992. "Women and the Union Wage Gap," Economic Journal, Royal Economic Society, vol. 102(410), pages 49-66, January.
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    Citations

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    Cited by:

    1. Claudia Piras & William D. Savedoff, 1998. "How Much do Teachers Earn?," IDB Publications (Working Papers) 6078, Inter-American Development Bank.
    2. Richard B. Freeman, 2009. "Labor Regulations, Unions, and Social Protection in Developing Countries: Market distortions or Efficient Institutions?," NBER Working Papers 14789, National Bureau of Economic Research, Inc.
    3. Blunch, Niels-Hugo & Verner, Dorte, 2001. "Asymmetries in union relative wage effects in Ghanaian manufacturing - an analysis applying quantile regressions," Policy Research Working Paper Series 2570, The World Bank.
    4. Toke Aidt & Zafiris Tzannatos, 2002. "Unions and Collective Bargaining : Economic Effects in a Global Environment," World Bank Publications, The World Bank, number 15241, November.
    5. Blunch, Niels-Hugo & Verner, Dorthe, 2001. "Assymetries in Union Relative Wage Effects in Ghanian Manufacturing - An analysis Applying Quantile Regressions," CLS Working Papers 01-7, University of Aarhus, Aarhus School of Business, Centre for Labour Market and Social Research.
    6. Robertson, Raymond & Dutkowsky, Donald H., 2002. "Labor adjustment costs in a destination country: the case of Mexico," Journal of Development Economics, Elsevier, vol. 67(1), pages 29-54, February.
    7. Claudia Piras & William D. Savedoff, 1998. "¿Cuánto ganan los docentes?," Research Department Publications 4123, Inter-American Development Bank, Research Department.
    8. David S. Kaplan & Raymond Robertson & Gabriel Martínez González, 2005. "What Happens to Wages after Displacement?," ECONOMIA JOURNAL, THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION - LACEA, vol. 0(Spring 20), pages 197-242, January.
    9. Maloney, William F. & Pontual Ribeiro, Eduardo, 1999. "Efficiency wage and union effects in labor demand and wage structure in Mexico - An application of quantile analysis," Policy Research Working Paper Series 2131, The World Bank.
    10. David Fairris, 2007. "¿Qué hacen los sindicatos en México?," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 22(2), pages 185-240.
    11. Nayar,Reema, 1996. "Indonesian labor legislation in a comparative perspective : a study of six APEC countries," Policy Research Working Paper Series 1673, The World Bank.

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