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Evaluating the Evidence on Union Employment and Wages

Author

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  • Peter D. Linneman
  • Michael L. Wachter
  • William H. Carter

Abstract

Using Current Population Survey data for the years 1973–86, this study tests the hypothesis that the steep decline of union employment shares since 1973 is related to increases in union wages relative to nonunion wages. The authors show that although the aggregate union wage premium has changed little since 1973, some industry-specific premiums have risen substantially, and the industries with the rising premiums are those experiencing declines in union employment shares. The increase in the premium explains from 21% to 64% of the decline in union shares depending on the equation specification. The paper also presents a detailed set of union wage premiums and employment shares for the sample period.

Suggested Citation

  • Peter D. Linneman & Michael L. Wachter & William H. Carter, 1990. "Evaluating the Evidence on Union Employment and Wages," ILR Review, Cornell University, ILR School, vol. 44(1), pages 34-53, October.
    • Handle: RePEc:sae:ilrrev:v:44:y:1990:i:1:p:34-53
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    Citations

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    Cited by:

    1. John Schmitt, 2008. "The Union Wage Advantage for Low-Wage Workers," CEPR Reports and Issue Briefs 2008-17, Center for Economic and Policy Research (CEPR).
    2. Michael Wachter, "undated". "Judging Unions' Future Using a Historical Perspective: The Public Policy Choice Between Competition and Unionization," Scholarship at Penn Law upenn_wps-1029, University of Pennsylvania Law School.
    3. Cihan Bilginsoy, 2013. "Union Wage Gap in the U.S. Construction Sector: 1983–2007," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 52(3), pages 677-701, July.
    4. Andrew Chamberlain, 2015. "Are State Workers Overpaid? Survey Evidence from Liquor Privatization in Washington State," Journal of Labor Research, Springer, vol. 36(4), pages 347-388, December.
    5. Adamson, Dwight W. & Partridge, Mark, 1994. "The Influence of International on Union Firm Hiring and Worker Union Choice," Economics Staff Papers 232237, South Dakota State University, Department of Economics.
    6. Barry T. Hirsch & Edward J. Schumacher, 2001. "Private Sector Union Density and the Wage Premium: Past, Present, and Future ," Journal of Labor Research, Transaction Publishers, vol. 22(3), pages 487-518, July.
    7. Steven G. Allen, 1994. "Developments in Collective Bargaining in Construction in the 1980s and 1990s," NBER Working Papers 4674, National Bureau of Economic Research, Inc.
    8. T. D. Stanley, 2001. "Wheat from Chaff: Meta-analysis as Quantitative Literature Review," Journal of Economic Perspectives, American Economic Association, vol. 15(3), pages 131-150, Summer.

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