Public-Sector Unions as Equalizing Institutions: Race, Gender, and Earnings

Abstract

This research demonstrates that the union wage premium is higher for Black and women workers in the US public sector, what we refer to as “an intersectional union premium.” Union mechanisms reinforce and expand the more equitable practices of the public sector, resulting in this additional boost. Using Current Population Survey data, 1983–2018, this research models intersectional effects on earnings by examining interactions between union membership and race–gender. Relative to White men, union membership boosts average earnings an additional 3% for Black men and Black women, and 2% for White women on top of the direct union premium. Corollary analyses reaffirm these effects in multiple state contexts, including by union density and union coverage. Intersectional union premiums are weaker in states that prohibit collective bargaining. These premiums are present across most types of public work, with the exception of police and fire employees. To conclude, the authors discuss how changing labor policies may impact race and gender equity in the public sector.

Evolution of Union Wages and Determinants

“…More recent evidence has cast some doubt on this, however. There is not necessarily a difference in the union wage premium for White and racialized workers in the private sector (Rosenfeld and Kleykamp 2012), but Kerrissey and Meyers (2021) find a 2-3% greater union premium in the public sector for Black and female workers relative to Whites and males, respectively. Shortly after the Wagner Act was passed, the unionization rate (the percentage of union members in the labor force) reached its absolute peak in the United States, hitting a high in the ballpark of 28% (Açıkgöz and Kaymak 2014) to 35% (Troy and Sheflin 1985) in the 1950's.…”

“…Intersectionality, that is to say identification with more than one marginalized community (usually used in the context of being both female and a racialized person; Crenshaw 1989), can have variegated effects on the union wage premium. Kerrissey and Meyers (2021) estimate a slightly larger premium for Black women than White women. An earlier study contradicted this finding,estimating that White women benefit from a larger union wage premium than White men, yet non-White women receive the smallest premium (Wunnava and Peled 1999).…”

“…Studies on union wage differentials by gender typically find a greater premium for women but are not unanimously in accord. Bryson et al (2020) find generally greater premia for women, as do Kerrissey and Meyers (2021), specifically in the public sector; on the other hand, traces out a decline in the premium for women relative to men over time. Canadian women are found to benefit from a 5-6% premium in the late 1990's, which erodes to 0-1% in the 2010's; the premium for men stays between 1-4% throughout this period.…”

Wage Gaps in Energy Industry: The Role of Sector

“…Singleton (2019) used data on public and private sector employers and employees in the UK from 2002 to 2016 and found that men had no significant wage premium in the public sector, while women had a 4% wage premium in the public sector compared to the nonpublic sector. Kerrissey and Meyers (2021) and Mueller (2022) both found that females tend to have larger publicsector wage premiums than their male counterparts. Kerrissey and Meyers (2021) further demonstrated that the union wage premium is higher for Black and women workers in the US public sector, which we refer to as "an intersectional union premium."…”

“…Kerrissey and Meyers (2021) and Mueller (2022) both found that females tend to have larger publicsector wage premiums than their male counterparts. Kerrissey and Meyers (2021) further demonstrated that the union wage premium is higher for Black and women workers in the US public sector, which we refer to as "an intersectional union premium." Source: China Urban Household Survey (2004Survey ( , 2008Survey ( , and 2013.…”