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The Union Impact on Hospital Wages and Fringe Benefits

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  • Roger Feldman
  • Richard Scheffler

Abstract

This paper uses 1977 data from a national probability sample of 1,200 hospitals to estimate the effect of unions on wages and fringe benefits in four occupations: registered nurses, practical nurses, secretaries, and housekeepers. The results show that unionization has a significant impact on wages that increases with the length of time collective bargaining has been in effect at the individual hospital. The overall wage effect of unions is about 8 percent for both types of nurses and 11 to 12 percent for secretaries and housekeepers employed in hospitals. The authors also estimate an equation for hospital wide fringe benefits, which shows that such benefits are positively related to the percent of full-time employees in the four occupations covered by union contracts.

Suggested Citation

  • Roger Feldman & Richard Scheffler, 1982. "The Union Impact on Hospital Wages and Fringe Benefits," ILR Review, Cornell University, ILR School, vol. 35(2), pages 196-206, January.
    • Handle: RePEc:sae:ilrrev:v:35:y:1982:i:2:p:196-206
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    Cited by:

    1. Freeman, Richard B, 1986. "Unionism Comes to the Public Sector," Journal of Economic Literature, American Economic Association, vol. 24(1), pages 41-86, March.
    2. Edward J. Schumacher & Barry T. Hirsch, 1997. "Compensating Differentials and Unmeasured Ability in the Labor Market for Nurses: Why Do Hospitals Pay More?," ILR Review, Cornell University, ILR School, vol. 50(4), pages 557-579, July.
    3. Douglas A. Webber, 2016. "Firm-Level Monopsony and the Gender Pay Gap," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 55(2), pages 323-345, April.
    4. Sullivan, Daniel, 1989. "Monopsony Power in the Market for Nurses," Journal of Law and Economics, University of Chicago Press, vol. 32(2), pages 135-178, October.
    5. Barry T. Hirsch & Edward J. Schumacher, "undated". "Union Wages, Rents, and Skills in Health Care Labor Markets," Working Papers 9721, East Carolina University, Department of Economics.
    6. Edward J. Schumacher, "undated". "Relative Wages and the Returns to Education in the Labor Market for Registered Nurses," Working Papers 9601, East Carolina University, Department of Economics.
    7. Peter McHenry & Jennifer Mellor, 2018. "Medicare hospital payment adjustments and nursing wages," International Journal of Health Economics and Management, Springer, vol. 18(2), pages 169-196, June.
    8. Christopher Coombs & Robert Newman & Richard Cebula & Mary White, 2015. "The Bargaining Power of Health Care Unions and Union Wage Premiums for Registered Nurses," Journal of Labor Research, Springer, vol. 36(4), pages 442-461, December.

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