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Union Wage Differentials for Covered Members and Nonmembers in Great Britain

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  • ANDREW K. G. HILDRETH

Abstract

I present the first longitudinal estimates of covered union member and covered nonmember wage differentials in Great Britain. Cross-sectional estimates show that covered union members receive a premium of about 10 percent over other workers, but covered nonmembers have no significant wage differential. Longitudinal estimates that accounted for fixed effects, selectivity, and measurement error indicated that OLS estimates are downward biased. The "true" union wage differential is likely about 30-35 percent. There is a large negative selection effect to union membership. No robust estimate could be found for covered nonmembers.

Suggested Citation

  • Andrew K. G. Hildreth, 2000. "Union Wage Differentials for Covered Members and Nonmembers in Great Britain," Journal of Labor Research, Transaction Publishers, vol. 21(1), pages 133-147, January.
    • Handle: RePEc:tra:jlabre:v:21:y:2000:i:1:p:133-147
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    Citations

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    Cited by:

    1. Koevoets, Wim, 2007. "Union wage premiums in Great Britain: Coverage or membership?," Labour Economics, Elsevier, vol. 14(1), pages 53-71, January.
    2. Alejandro Donado, 2015. "Why Do Unionized Workers Have More Nonfatal Occupational Injuries?," ILR Review, Cornell University, ILR School, vol. 68(1), pages 153-183, January.
    3. Goerke, Laszlo & Pannenberg, Markus, 2011. "Trade union membership and dismissals," Labour Economics, Elsevier, vol. 18(6), pages 810-821.
    4. Alison L. Booth & Mark L. Bryan, 2004. "The Union Membership Wage-Premium Puzzle: Is There a Free Rider Problem?," ILR Review, Cornell University, ILR School, vol. 57(3), pages 402-421, April.
    5. Sukti DASGUPTA, 2002. "Attitudes towards trade unions in Bangladesh, Brazil, Hungary and Tanzania," International Labour Review, International Labour Organization, vol. 141(4), pages 413-440, December.
    6. Goerke, Laszlo & Pannenberg, Markus, 2015. "Trade union membership and sickness absence: Evidence from a sick pay reform," Labour Economics, Elsevier, vol. 33(C), pages 13-25.
    7. Mathieu Bunel & Gilles Raveaud, 2011. "Union Membership does not pay," Working Papers halshs-00868217, HAL.
    8. Xiahai Wei & Tony Fang & Yang Jiao & Jiahui Li, 2019. "Language Premium Myth or Fact: Evidence from Migrant Workers of Guangdong, China," Journal of Labor Research, Springer, vol. 40(3), pages 356-386, September.
    9. John W. Budd & Karen Mumford, 2004. "Trade Unions and Family-Friendly Policies in Britain," ILR Review, Cornell University, ILR School, vol. 57(2), pages 204-222, January.
    10. Laszlo Goerke & Markus Pannenberg, 2012. "Risk Aversion and Trade‐Union Membership," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(2), pages 275-295, June.
    11. Pipit Pitriyan & Adiatma Y.M Siregar, 2012. "Wage and Labor Union in Manufacturing Sector," Working Papers in Economics and Development Studies (WoPEDS) 201203, Department of Economics, Padjadjaran University, revised Aug 2012.
    12. Frank Scharr, 2005. "Tarifbindung, Rententeilung und Konzessionsverträge als Einflussgrößen der Lohnhöhe in Unternehmen : eine Untersuchung mit Mikrodaten für thüringische Firmen," ifo Dresden Studien, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 39, November.
    13. Blanchflower, David G. & Bryson, Alex, 2004. "The union wage premium in the US and the UK," LSE Research Online Documents on Economics 19987, London School of Economics and Political Science, LSE Library.
    14. Mathieu Bunel & Gilles Raveaud, 2012. "Union Membership does not pay: Evidence from recent French Micro Data," Economics Working Paper Archive (University of Rennes & University of Caen) 201232, Center for Research in Economics and Management (CREM), University of Rennes, University of Caen and CNRS.
    15. Alex Bryson, "undated". "The Size of the Union Membership Wage Premium in Britain’s Private Sector," PSI Research Discussion Series 9, Policy Studies Institute, UK.
    16. Wels, Jacques, 2020. "The role of labour unions in explaining workers’ mental and physical health in Great Britain. A longitudinal approach," Social Science & Medicine, Elsevier, vol. 247(C).
    17. Ozkan Eren, 2009. "Does Membership Payoff for Covered Workers? A Distributional Analysis of the Free Rider Problem," ILR Review, Cornell University, ILR School, vol. 62(3), pages 367-380, April.

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