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A New Look at the Union Wage Premium during the Early Years of the AFL

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  • Debbie Mullin

Abstract

This study provides new evidence showing that the union wage premium in the late nineteenth century in the United States was lower than previously believed. Analysis of wage and productivity data from an 1890 survey of individual workers in Maine yields a 9.2% union-nonunion wage gap, once correction is made for self-selection bias (the disproportionate representation in unions of workers who, because of skills and other attributes, would probably gain above-average wages even in the absence of unions). The author argues that business cycle conditions and distinctive union dynamics can affect the results of analyses that employ the Heckman procedure, a common procedure designed to correct for self-selection bias.

Suggested Citation

  • Debbie Mullin, 1998. "A New Look at the Union Wage Premium during the Early Years of the AFL," ILR Review, Cornell University, ILR School, vol. 51(2), pages 253-268, January.
    • Handle: RePEc:sae:ilrrev:v:51:y:1998:i:2:p:253-268
    DOI: 10.1177/001979399805100206
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    References listed on IDEAS

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    1. James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492, National Bureau of Economic Research, Inc.
    2. Susan B. Carter and Richard Sutch., 1989. "Micro-Level Data Sets Suitable for Investigation of Macroeconomic Issues Extracted from Reports of the State Bureaus of Labor Statistics, Circa 1890," Economics Working Papers 89-114, University of California at Berkeley.
    3. Samuel Rezneck, 1953. "Unemployment, Unrest, and Relief in the United States during the Depression of 1893-97," Journal of Political Economy, University of Chicago Press, vol. 61(4), pages 324-324.
    4. Leo Wolman, 1936. "Ebb and Flow in Trade Unionism," NBER Books, National Bureau of Economic Research, Inc, number wolm36-1.
    5. Barry Eichengreen, 1987. "The Impact of Late Nineteenth-Century Unions on Labor Earnings and Hours: Iowa in 1894," ILR Review, Cornell University, ILR School, vol. 40(4), pages 501-515, July.
    6. Carter, Susan B. & Sutch, Richard, 1989. "Micro-Level Data Sets Suitable for Investigation of Macroeconomic Issues Extracted from REports of the State Bureaus of Labor Statistics, Circa 1890," Department of Economics, Working Paper Series qt7t918898, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    7. repec:bla:econom:v:61:y:1994:i:244:p:435-56 is not listed on IDEAS
    8. Friedman, Gerald, 1988. "Strike Success and Union Ideology: The United States and France, 1880–1914," The Journal of Economic History, Cambridge University Press, vol. 48(1), pages 1-25, March.
    9. Leo Wolman, 1924. "Index to "The Growth of American Trade Unions, 1880-1923"," NBER Chapters, in: The Growth of American Trade Unions, 1880-1923, pages 163-170, National Bureau of Economic Research, Inc.
    10. Patricia Dillon & Ira Gang, 1987. "Earnings Effects of Labor Organizations in 1890," ILR Review, Cornell University, ILR School, vol. 40(4), pages 516-527, July.
    11. Keyssar,Alexander, 1986. "Out of Work," Cambridge Books, Cambridge University Press, number 9780521297677, September.
    12. Leo Wolman, 1924. "Appendix to "The Growth of American Trade Unions, 1880-1923"," NBER Chapters, in: The Growth of American Trade Unions, 1880-1923, pages 109-162, National Bureau of Economic Research, Inc.
    13. Bailey, Roy E & Boyer, George & Hatton, Timothy J., 1992. "The Union Wage Effect in Late Nineteenth Century Britain," CEPR Discussion Papers 712, C.E.P.R. Discussion Papers.
    14. Leo Wolman, 1924. "Introduction "The Growth of American Trade Unions, 1880-1923"," NBER Chapters, in: The Growth of American Trade Unions, 1880-1923, pages 19-28, National Bureau of Economic Research, Inc.
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    16. Leo Wolman, 1924. "The Growth of American Trade Unions, 1880-1923," NBER Books, National Bureau of Economic Research, Inc, number wolm24-1.
    17. Card, David & Olson, Craig A, 1995. "Bargaining Power, Strike Durations, and Wage Outcomes: An Analysis of Strikes in the 1880s," Journal of Labor Economics, University of Chicago Press, vol. 13(1), pages 32-61, January.
    18. Leo Wolman, 1936. "Appendices to "Ebb and Flow in Trade Unionism"," NBER Chapters, in: Ebb and Flow in Trade Unionism, pages 172-239, National Bureau of Economic Research, Inc.
    19. Leo Wolman, 1936. "Introduction to "Ebb and Flow in Trade Unionism"," NBER Chapters, in: Ebb and Flow in Trade Unionism, pages -9--5, National Bureau of Economic Research, Inc.
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    Cited by:

    1. William M. Boal, 2017. "What did Unions do? The Case of Illinois Coal Mining in the 1880s," Journal of Labor Research, Springer, vol. 38(4), pages 439-474, December.

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