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Seniority, Earnings and Unions

Author

Listed:
  • Booth, Alison L
  • Frank, Jeff

Abstract

This paper uses a new data source to investigate whether wages rise more with seniority in unionized or non-unionized workplaces. The data distinguish workers who are covered by incremental wage scales with automatic progression by seniority. For union workers with seniority scales, the union wage differential increases with seniority. This is not the case for union workers without seniority scales. Taking account of this heterogeneity, we are able to reconcile previous paradoxical empirical findings. The results provide support for discriminating monopoly models of the trade union and have important efficiency and distributional implications.

Suggested Citation

  • Booth, Alison L & Frank, Jeff, 1994. "Seniority, Earnings and Unions," CEPR Discussion Papers 1007, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:1007
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    File URL: http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=1007
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    Citations

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    Cited by:

    1. Alison L. Booth & Marco Francesconi & Jeff Frank, 2002. "Temporary Jobs: Stepping Stones Or Dead Ends?," Economic Journal, Royal Economic Society, vol. 112(480), pages 189-213, June.
    2. Francesconi, Marco & L. Booth, Alison, 2000. "Collectivism versus individualism: performance-related pay and union coverage for non-standard workers in Britain," ISER Working Paper Series 2000-35, Institute for Social and Economic Research.
    3. Sarah Brown & John G. Sessions, "undated". "Education, Earnings, and Fixed-Term Contracts," Discussion Papers in Public Sector Economics 01/5, Division of Economics, School of Business, University of Leicester.

    More about this item

    Keywords

    Discriminating Monopoly Union Models; Earnings; Incremental Wage Scales; Seniority; Trade Unions;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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