This paper assesses the impact that trade unions have on the wage rates paid to workers in Great Britain using data from the Labour Force Survey. By employing a quantile regression model, this analysis is conducted over the entire range of the earnings distribution, where it is found that unions have more scope for increasing the earnings of workers on the very lowest of wage rates. Asymmetries in the effects of union membership and union coverage are also found to exist for employees across all earnings levels.
IThere is an increasing body of empirical evidence in the UK highlighting the influence that unions have over earnings, at both an individual and an establishment level (useful overviews are provided by Booth, 1995;Andrews et al., 1998b). Whilst this literature describes in detail the effect of unionization upon the wages of workers in the central parts of the earnings distribution, much less is known of the wage effects that unions are able to exert across the entire earnings distribution. To our knowledge, the only published work at the individual level that identifies the premiums that trade unions are able to generate across the earnings distribution is Hildreth (1999). Using data from the British Household Panel Survey (BHPS), estimates of the covered union wage effect at various points along the earnings distribution are presented in a more detailed examination of the change in the union wage differential between 1991 and 1995. For both union members and union nonmembers, it is found that unions have more scope for influencing the earnings of workers in the lowest quantile of the earnings distribution than of