Asymmetries in union relative wage effects in Ghanaian manufacturing - an analysis applying quantile regressions
The authors analyze the determinants of earnings in Ghanaian manufacturing, focusing on the impact of unions in terms of the"union relative wage effect", and the possible asymmetries of this effect across the earnings distribution. They find evidence of a union relative wage effect occurring through two distinct channels. First, there is a direct effect through individual union membership, the standard"union premium", well known from the empirical literature on unions. Second, there is a spillover effect to non-union members. The authors also find evidence of an additional union effect, that comes through firm-specific training. They confirm their conjecture that there is an asymmetry in the union relative wage effect: unions benefit mainly at the lower end of the wage distribution. This finding is in line with earlier research, which generally finds that unions reduce income inequality, and wage discrimination. An evaluation of the non-union sub-sample, using the estimated union wage structure, confirms the presence of structural differences between the union, and non-union segments of Ghanaian manufacturing: for given characteristics, a worker in the union sector earns more than a worker in the non-union sector.
|Date of creation:||31 Mar 2001|
|Contact details of provider:|| Postal: 1818 H Street, N.W., Washington, DC 20433|
Phone: (202) 477-1234
Web page: http://www.worldbank.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- T. Paul Schultz & Germano Mwabu, 1998.
"Labor Unions and the Distribution of Wages and Employment in South Africa,"
Cornell University, ILR School, vol. 51(4), pages 680-703, July.
- Schultz, T.P. & Mwabu, G., 1997. "Labor Unions and the Distribution of Wages and Employment in South Africa," Papers 776, Yale - Economic Growth Center.
- T. Paul Schultz & Germano Mwabu, 1997. "Labor Unions and the Distribution of Wages and Employment in South Africa," Working Papers 776, Economic Growth Center, Yale University.
- 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.
- Halvorsen, Robert & Palmquist, Raymond, 1980. "The Interpretation of Dummy Variables in Semilogarithmic Equations," American Economic Review, American Economic Association, vol. 70(3), pages 474-475, June.
- Standing, Guy, 1992. "Do Unions Impede or Accelerate Structural Adjustment? Industrial versus Company Unions in an Industrialising Labour Market," Cambridge Journal of Economics, Oxford University Press, vol. 16(3), pages 327-354, September.
- Moshe Buchinsky, 1998. "Recent Advances in Quantile Regression Models: A Practical Guideline for Empirical Research," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 88-126.
- Booth, Alison L & Chatterji, Monojit, 1998. "Unions and Efficient Training," Economic Journal, Royal Economic Society, vol. 108(447), pages 328-343, March.
- 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.
- Booth, Alison L & Francesconi, Marco & Zoega, Gylfi, 1999. "Training, Rent-Sharing and Unions," CEPR Discussion Papers 2200, C.E.P.R. Discussion Papers.
- 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.
- 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.
- Pencavel, John, 1995. "The role of labor unions in fostering economic development," Policy Research Working Paper Series 1469, The World Bank.
- Velenchik, Ann D., 1997.
"Government intervention, efficiency wages, and the employer size wage effect in Zimbabwe,"
Journal of Development Economics,
Elsevier, vol. 53(2), pages 305-338, August.
- Velenchik, A.D., 1995. "Government Intervention, Efficiency Wages, and the Employer-Size Wage Effects in Zimbabwe," Papers 95-09, Wellesley College - Department of Economics.
- Rama,Martin G., 1998. "Wage misalignment in CFA countries: are labor market policies to blame?," Policy Research Working Paper Series 1873, The World Bank.
- Buchinsky, Moshe, 1995. "Estimating the asymptotic covariance matrix for quantile regression models a Monte Carlo study," Journal of Econometrics, Elsevier, vol. 68(2), pages 303-338, August.
- Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:2570. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi)
If references are entirely missing, you can add them using this form.