The Effects of Unions on Wages: Findings from Pooled Data

摘要: Such is the import of union impact on wages, that issue has generated a sizeable literature. This notwithstanding, strong case can be made for fresh study. In this article, results have been updated using newer data than used hitherto. addition, time-series and cross-section pooled period 1967-1981. Since economic conditions vary over time, wage premiums calculated any one year may differ quite substantially from those derived another year. Pooling tends to give an "averaging" sorts. Outliers associated with extremes business cycle are neutralized. Most studies effects confine their attention limited number subgroups population as result limitations. By contrast, it possible in study compute many 260 different (though not mutually exclusive) groups. The computation comparison so groups, common time-period identical model specification endeavor without precedent THE DATA AND MODEL variables were obtained Panel Study Income Dynamics. Consumer price indices which obtain real earnings 1982 Economic Report President. cover 15 -year includes only individuals between ages 18 65 who reported positive income. recent years, debate centered around whether membership variable endogenous equation. Recent attempted incorporate thinking by specifying simultaneous-equations models. Freeman Medoff (1981) among others, however, critical such models account rather unstable they yield. widespread skepticism about documented Ashraf (1990). As these misgivings models, uses traditional approach union-non-union differential defined X = exp (U) - 1, where U represents coefficient estimate study, equation is: