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Trade Union Decline and the Distribution of Wages in the UK: Evidence from Kernel Density Estimation

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Author Info
Bell, Brian D
Pitt, Michael K
Abstract

This paper assesses the impact of changes in union density on the male structure in the United Kingdom over the 1980s. Using four separate data sets, the authors estimate the kernel density of hourly wages for men. Counterfactual densities are then generated to predict how the distribution of wages has changed over time because of the decline in union membership. They find that approximately 20 percent of the increase in the variance of log wages over the period can be attributed to changes in unionization. The effect is particularly strong in the latter part of the period. The authors also present disaggregated estimates of the impact of declining unionization. Their results are robust across all the data sets the authors examine and similar results are obtained if union coverage is used rather than union membership. Copyright 1998 by Blackwell Publishing Ltd

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Publisher Info
Article provided by Department of Economics, University of Oxford in its journal Oxford Bulletin of Economics & Statistics.

Volume (Year): 60 (1998)
Issue (Month): 4 (November)
Pages: 509-28
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Handle: RePEc:bla:obuest:v:60:y:1998:i:4:p:509-28

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0305-9049

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  1. John T. Addison & Ralph W. Bailey & W. Stanley Siebert, 2009. "Wage Dispersion in a Partially Unionized Labor Force," Discussion Papers 09-04, Department of Economics, University of Birmingham. [Downloadable!]
    Other versions:
  2. Donna Brown & Peter Ingram & Jonathan Wadsworth, 2004. "Everyone's A Winner? Union Effects on Persistence in Private Sector Wage Settlements: Longitudinal Evidence from Britain," Department of Economics Discussion Papers 1104, Department of Economics, University of Surrey. [Downloadable!]
  3. DiNardo, John & Hallock, Kevin F. & Pischke, Jörn-Steffen, 2000. "Unions and the Labor Market for Managers," IZA Discussion Papers 150, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. Pannenberg, Markus & Wagner, Gert G., 2001. "Overtime Work, Overtime Compensation and the Distribution of Economic Well-Being Evidence for the West Germany and Great Britain," IZA Discussion Papers 318, Institute for the Study of Labor (IZA). [Downloadable!]
  5. Addison, John T. & Bailey, Ralph & Siebert, W. Stanley, 2003. "The Impact of Deunionisation on Earnings Dispersion Revisited," IZA Discussion Papers 724, Institute for the Study of Labor (IZA). [Downloadable!]
  6. A Charlwood & K Hansen & David Metcalf, 2000. "Unions and the Sword of Justice: Unions and Pay Systems, Pay Inequality, Pay Discrimination and Low Pay," CEP Discussion Papers dp0452, Centre for Economic Performance, LSE. [Downloadable!]
  7. Gosling, Amanda, 2003. "The Changing Distribution of Male and Female Wages, 1978-2000: Can the Simple Skills Story be Rejected?," CEPR Discussion Papers 4045, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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