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Trade Union Membership and Earnings in Kenyan Manufacturing Firms

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  • Manda , Damiano Kulundu

    (Department of Economics University of Nairobi)

  • Bigsten, Arne

    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

  • Mwabu , Germano

    (Departement of Economics University of Nairobi)

Abstract

This paper analyses the effect of trade unions on earnings in Kenyan manufacturing using a switching regression model, which takes into account endogeneity of union status of workers. In contrast to earlier studies of the Kenyan labour market, which indicate that the union effect on wages is negative, our results show a strong positive trade union effect. We also show that it is workers with relatively weak position in the labour market that joins the union.

Suggested Citation

  • Manda , Damiano Kulundu & Bigsten, Arne & Mwabu , Germano, 2001. "Trade Union Membership and Earnings in Kenyan Manufacturing Firms," Working Papers in Economics 50, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0050
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    References listed on IDEAS

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    1. House, William J & Rempel, Henry, 1976. "The Impact of Unionization on Negotiated Wages in the Manufacturing Sector in Kenya," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 38(2), pages 111-123, May.
    2. Schmidt, Peter & Strauss, Robert P, 1976. "The Effect of Unions on Earnings and Earnings on Unions: A Mixed Logit Approach," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 17(1), pages 204-212, February.
    3. Booth,Alison L., 1994. "The Economics of the Trade Union," Cambridge Books, Cambridge University Press, number 9780521468398, September.
    4. David Neumark & Michael L. Wachter, 1995. "Union Effects on Nonunion Wages: Evidence from Panel Data on Industries and Cities," ILR Review, Cornell University, ILR School, vol. 49(1), pages 20-38, October.
    5. Lee, Lung-Fei, 1978. "Unionism and Wage Rates: A Simultaneous Equations Model with Qualitative and Limited Dependent Variables," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(2), pages 415-433, June.
    6. Lanfranchi, Joseph & Ohlsson, Henry & Skalli, Ali, 2002. "Compensating wage differentials and shift work preferences," Economics Letters, Elsevier, vol. 74(3), pages 393-398, February.
    7. 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. Mohamed Jellal & François-Charles Wolff, 2003. "Privatisation et négociation collective," Revue d’économie du développement, De Boeck Université, vol. 11(1), pages 73-99.
    2. Fox, Louise & Oviedo, Ana Maria, 2008. "Are skills rewarded in Sub-Saharan Africa ? determinants of wages and productivity in the manufacturing sector," Policy Research Working Paper Series 4688, The World Bank.
    3. Brändle, Tobias, 2024. "Unions and Collective Bargaining: The Influence on Wages, Employment and Firm Survival," GLO Discussion Paper Series 1457, Global Labor Organization (GLO).
    4. Charles Godfred Ackah & Charles Adjasi & Festus Turkson & Adjoa Acquah, 2014. "Education, Skill, and Earnings: Further Evidence from Ghana," WIDER Working Paper Series wp-2014-073, World Institute for Development Economic Research (UNU-WIDER).
    5. Wambugu, Anthony, 2002. "Real Wages and Returns to Human Capital in Kenya Manufacturing firms," Working Papers in Economics 75, University of Gothenburg, Department of Economics.
    6. Guataquí R., Juan Carlos & García S., Andrés & Rodríguez A., Mauricio, 2011. "Structural determinants of trade union membership in Colombia," Perfil de Coyuntura Económica, Universidad de Antioquia, CIE, June.
    7. Ackah, Charles & Adjasi, Charles & Turkson, Festus & Acquah, Adjoa, 2014. "Education, skill, and earnings: Further evidence from Ghana," WIDER Working Paper Series 073, World Institute for Development Economic Research (UNU-WIDER).
    8. Abdullah, Borhan & Zangelidis, Alexandros & Theodossiou, Ioannis, 2023. "Demand and supply effects on native-immigrant wage differentials: the case of Malaysia," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 57, pages 1-22.

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    More about this item

    Keywords

    Unions; wages; manufacturing; Kenya;
    All these keywords.

    JEL classification:

    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General

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