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Estimating the Union Earnings Effect Using a Sample of Displaced Workers

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  • Steven Raphael

Abstract

This paper improves on past longitudinal estimates of the union earnings effect by using a sample of workers for whom the error in measuring changes in union status is minimized. The author uses a sample of workers displaced by plant closings from the 1994 and 1996 Current Population Survey Displaced Workers Supplement files to estimate the effects of union membership on weekly earnings. When models are estimated using the entire sample of displaced workers, longitudinal estimates of the union earnings effect are quite similar in magnitude to estimates from cross-sectional regressions. In models estimated separately by skill group, the author finds some evidence of positive selection into unions among workers with low observed skills and negative selection into unions among workers with high observed skills.

Suggested Citation

  • Steven Raphael, 2000. "Estimating the Union Earnings Effect Using a Sample of Displaced Workers," ILR Review, Cornell University, ILR School, vol. 53(3), pages 503-521, April.
    • Handle: RePEc:sae:ilrrev:v:53:y:2000:i:3:p:503-521
    DOI: 10.1177/001979390005300308
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    References listed on IDEAS

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    1. repec:eee:labchp:v:2:y:1986:i:c:p:1139-1181 is not listed on IDEAS
    2. Robert Gibbons & Lawrence Katz, 1992. "Does Unmeasured Ability Explain Inter-Industry Wage Differentials?," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 59(3), pages 515-535.
    3. Gregory M. Duncan & Duane E. Leigh, 1980. "Wage Determination in the Union and Nonunion Sectors: A Sample Selectivity Approach," ILR Review, Cornell University, ILR School, vol. 34(1), pages 24-34, October.
    4. Richard B. Freeman & James L. Medoff, 1981. "The Impact of Collective Bargaining: Illusion or Reality?," NBER Working Papers 0735, National Bureau of Economic Research, Inc.
    5. Robinson, Chris, 1989. "The Joint Determination of Union Status and Union Wage Effects: Some Tests of Alternative Models," Journal of Political Economy, University of Chicago Press, vol. 97(3), pages 639-667, June.
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    Cited by:

    1. Abhir Kulkarni & Barry T. Hirsch, 2021. "Revisiting Union Wage and Job Loss Effects Using the Displaced Worker Surveys," ILR Review, Cornell University, ILR School, vol. 74(4), pages 948-976, August.

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