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Union Wage Effects and the Probability of Union Membership

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  • Christie, Virginia

Abstract

This paper uses L. F. 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 percent 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 percent of gross domestic product. Copyright 1992 by The Economic Society of Australia.

Suggested Citation

  • Christie, Virginia, 1992. "Union Wage Effects and the Probability of Union Membership," The Economic Record, The Economic Society of Australia, vol. 68(200), pages 43-56, March.
    • Handle: RePEc:bla:ecorec:v:68:y:1992:i:200:p:43-56
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    Citations

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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. Lixin Cai & Amy Y.C. Liu, 2008. "Union Wage Effects in Australia: Is There Variation along the Distribution?," The Economic Record, The Economic Society of Australia, vol. 84(267), pages 496-510, December.
    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. 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.
    7. 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.
    8. Blanchflower, David G., 2006. "A Cross-Country Study of Union Membership," IZA Discussion Papers 2016, Institute of Labor Economics (IZA).
    9. 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.
    10. James Bishop & Iris Chan, 2019. "Is Declining Union Membership Contributing to Low Wages Growth?," RBA Annual Conference Papers acp2019-06, Reserve Bank of Australia.
    11. 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.
    12. 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.
    13. David Peetz, 2001. "Individual Contracts, Collective Bargaining, Wages and Power," CEPR Discussion Papers 437, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    14. 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.
    15. 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.
    16. Schnabel, Claus, 2002. "Determinants of trade union membership," Discussion Papers 15, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    17. 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.
    18. 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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