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Unions and the Sword of Justice: Unions and Pay Systems, Pay Inequality, Pay Discrimination and Low Pay

Author

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  • A Charlwood
  • K Hansen
  • David Metcalf

Abstract

Dispersion in pay is lower among union members than among non-unionists. This reflects two factors. First, union members and jobs are more homogeneous than their non-union counterparts. Second, union wage policies within and across firms lower pay dispersion. Unions' minimum wage targets also truncate the lower tail of the union distribution. There are two major consequences of these egalitarian union wage policies. First, the return to human capital is lower in firms which recognise unions than in the unorganised sector. Second, unions compress the wage structure by gender, race and occupation.

Suggested Citation

  • A Charlwood & K Hansen & David Metcalf, 2000. "Unions and the Sword of Justice: Unions and Pay Systems, Pay Inequality, Pay Discrimination and Low Pay," CEP Discussion Papers dp0452, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp0452
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. Jianwei Li & David Metcalf, 2005. "Chinese Unions: Nugatory or Transforming? An 'Alice' Analysis," CEP Discussion Papers dp0708, Centre for Economic Performance, LSE.
    3. Gomez, Rafael & Lipset, Seymour Martin & Meltz, Noah, 2001. "Frustrated demand for unionisation: the case of the United States and Canada revisited," LSE Research Online Documents on Economics 20126, London School of Economics and Political Science, LSE Library.
    4. Belfield, Richard & Marsden, David, 2002. "Matchmaking: the influence of monitoring environments on the effectiveness of performance pay systems," LSE Research Online Documents on Economics 3636, London School of Economics and Political Science, LSE Library.
    5. Metcalf, David & Li, Jianwei, 2005. "Chinese unions: nugatory or transforming? An 'Alice' analysis," LSE Research Online Documents on Economics 19879, London School of Economics and Political Science, LSE Library.
    6. Juan Francisco Canal Domínguez & César Rodríguez Gutiérrez, 2004. "Collective Bargaining and Within‐firm Wage Dispersion in Spain," British Journal of Industrial Relations, London School of Economics, vol. 42(3), pages 481-506, September.
    7. Florentino Felgueroso & María J. Pérez‐Villadóniga & Juan Prieto‐Rodriguez, 2008. "The Effect Of The Collective Bargaining Level On The Gender Wage Gap: Evidence From Spain," Manchester School, University of Manchester, vol. 76(3), pages 301-319, June.
    8. Rachel Aleks & Tina Saksida & Sam Kolahgar, 2021. "Practice What You Preach: The Gender Pay Gap in Labor Union Compensation," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 60(4), pages 403-435, October.
    9. Florentino Felgueroso & Juan Prieto Rodríguez & María José Pérez-Villadóniga, 2007. "Collective Bargaining and the GenderWage Gap: A Quantile Regression Approach," Working Papers 2007-06, FEDEA.

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