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Unions, wages and hours

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  • David G. Blanchflower
  • Alex Bryson

Abstract

We examine union-non-union differentials in wages and hours in the United States over the last 50 years using data from the Current Population Survey (CPS). The regression-adjusted difference between union members’ and non-members’ hourly earnings has been falling since the Great Recession. The union differential in weekly wages has been more stable. Although it fell by around 5 log points during COVID it remains 15 log points. This weekly earnings differential arises from both a higher hourly wage of around 10 log points and longer working hours (5 log points). The working hours differential partly reflects unions’ ability to tackle under-employment, such that union workers work closer to the hours they desire than their non-union counterparts. The traditional focus on hourly wage differentials underplays the important role trade unions play in maintaining members’ weekly earnings by ensuring workers receive the paid hours they desire.

Suggested Citation

  • David G. Blanchflower & Alex Bryson, 2024. "Unions, wages and hours," NBER Working Papers 32471, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:32471
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    More about this item

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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