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Union Wage Effects in Australia: Is There Variation along the Distribution?

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  • LIXIN CAI
  • AMY Y.C. LIU

Abstract

This study uses quantile regression models to examine whether the union wage effect varies across the conditional wage distribution. Although for men it is evident that the union wage effect decreases when moving up the conditional wage distribution, the effect for women is relatively stable except at the extremities of the distribution. Overall, unions are found to have a larger effect on men than on women wages. The decomposition results show that for men, the union wage effect explains a substantial proportion of the observed wage gap between union and non‐union workers; this is not the case for women.

Suggested Citation

  • 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.
    • Handle: RePEc:bla:ecorec:v:84:y:2008:i:267:p:496-510
    DOI: 10.1111/j.1475-4932.2008.00513.x
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    References listed on IDEAS

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    2. Goerke, Laszlo & Pannenberg, Markus, 2011. "Trade union membership and dismissals," Labour Economics, Elsevier, vol. 18(6), pages 810-821.
    3. João Pereira & Aurora Galego, 2014. "Inter-Regional Wage Differentials in Portugal: An Analysis Across the Wage Distribution," Regional Studies, Taylor & Francis Journals, vol. 48(9), pages 1529-1546, September.
    4. 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.
    5. Inga Laß & Mark Wooden, 2019. "The Structure of the Wage Gap for Temporary Workers: Evidence from Australian Panel Data," British Journal of Industrial Relations, London School of Economics, vol. 57(3), pages 453-478, September.
    6. Geoff Weir, 2018. "Wage Growth Puzzles and Technology," RBA Research Discussion Papers rdp2018-10, Reserve Bank of Australia.
    7. James Bishop & Iris Chan, 2019. "Is Declining Union Membership Contributing to Low Wages Growth?," RBA Research Discussion Papers rdp2019-02, Reserve Bank of Australia.
    8. Lixin Cai & C. Jeffrey Waddoups, 2011. "Union Wage Effects in Australia: Evidence from Panel Data," British Journal of Industrial Relations, London School of Economics, vol. 49(Supplemen), pages 279-305, July.

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