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Union Wage Effects and the Probability of Union Membership

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  • VIRGINIA CHRISTIE

Abstract

This paper uses Lee's (1978) model to determine the wage gains associated with trade union membership and the reasons individuals join trade unions in Australia The data are derived from the 1984 Australian National Social Science Survey. A major conclusion is that unions secure a 17.22 per cent wage gain for their members, other things the same. This expected wage premium is shown to have an important positive impact upon the union membership decision. The welfare loss associated with the union wage premium is argued to be relatively minor about one half of one per cent of gross domestic product

Suggested Citation

  • Virginia Christie, 1992. "Union Wage Effects and the Probability of Union Membership," The Economic Record, The Economic Society of Australia, vol. 68(1), pages 43-56, March.
    • Handle: RePEc:bla:ecorec:v:68:y:1992:i:1:p:43-56
    DOI: 10.1111/j.1475-4932.1992.tb01748.x
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    References listed on IDEAS

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    Cited by:

    1. Mark Wooden, 2001. "Union Wage Effects in the Presence of Enterprise Bargaining," The Economic Record, The Economic Society of Australia, vol. 77(236), pages 1-18, March.
    2. Schnabel, Claus, 2012. "Union membership and density: Some (not so) stylized facts and challenges," Discussion Papers 81, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    3. Paul Miller & Charles Mulvey, 1993. "What Do Australian Unions Do?," The Economic Record, The Economic Society of Australia, vol. 69(3), pages 315-342, September.
    4. Paul Miller & Paul Miller & Charles Mulvey, 1996. "Unions, Firm Size and Wages," The Economic Record, The Economic Society of Australia, vol. 72(217), pages 138-151, June.
    5. Hartog, Joop & Leuven, Edwin & Teulings, Coen, 2002. "Wages and the bargaining regime in a corporatist setting: the Netherlands," European Journal of Political Economy, Elsevier, vol. 18(2), pages 317-331, June.
    6. Michael Dobbie & Daehoon Nahm, 2018. "The Determinants of Individual Union Membership in Australia: A Structural Approach Using Panel Data," Economic Papers, The Economic Society of Australia, vol. 37(1), pages 75-91, March.
    7. Lixin Cai & Amy Y.C. Liu, 2007. "Union Wage Effects in Australia: Are There Variations in Distribution?," Melbourne Institute Working Paper Series wp2007n017, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    8. Mark Wooden & Jeffrey Balchin, 1993. "Unionization in Australia: Evidence from the AWIRS," The Economic Record, The Economic Society of Australia, vol. 69(3), pages 305-314, September.
    9. Xinxin Ma & Ichiro Iwasaki, 2021. "Does communist party membership bring a wage premium in China? a meta-analysis," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 19(1), pages 55-94, January.
    10. A. Preston, 1996. "Where Are We Now With Human Capital Theory in Australia?," Economics Discussion / Working Papers 96-18, The University of Western Australia, Department of Economics.
    11. Blanchflower, David G., 2006. "A Cross-Country Study of Union Membership," IZA Discussion Papers 2016, Institute of Labor Economics (IZA).
    12. Schnabel, Claus, 2002. "Determinants of trade union membership," Discussion Papers 15, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    13. Zafiris TZANNATOS & Toke S. AIDT, 2006. "Unions and microeconomic performance: A look at what matters for economists (and employers)," International Labour Review, International Labour Organization, vol. 145(4), pages 257-278, December.
    14. Jeff Borland & Anthony Suen, 1994. "The Experience‐Earnings Profile in Australia," The Economic Record, The Economic Society of Australia, vol. 70(208), pages 44-55, March.
    15. Aglio, Daniele & Di Mauro, Filippo, 2020. "Decentralisation of collective bargaining: A path to productivity?," IWH-CompNet Discussion Papers 3/2020, Halle Institute for Economic Research (IWH).

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