Union wage premiums in Great Britain: Coverage or membership?

Koevoets, Wim

doi:10.1016/j.labeco.2004.12.001

Cited by 16 publications

(10 citation statements)

References 25 publications

(87 reference statements)

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“…However, this argument is not supported by efficiency wage theories, which suggest that considerations of cost of living are likely to be equally prominent in union and nonunion firms. This is also consistent with recent analysis of union wage mark-up in Britain, which has been found to be small or non-existent (see, for example, Booth and Bryan, 2004;and Koevoets, 2007).…”

Section: Mechanisms Of Pay Determinationsupporting

confidence: 92%

The determinants of pay settlements: the influence of the national context

Bayo‐Moriones

Galdón-Sánchez

Martínez-de-Morentin

2013

The International Journal of Human Resource Management

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This article studies the influence of national context and collective bargaining on the factors taken into account when adjusting wages. Using data from Spanish and British manufacturing establishments, we examine the relative importance of the cost of living, the ability to recruit or retain employees, the financial performance of the organisation and the industrial relations climate on wage adjustments of manual workers at the establishment level. Our findings show that there are significant differences on the importance given to these factors in both countries. In part, these are related to differences in the incidence of collective bargaining.

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Section: Mechanisms Of Pay Determinationsupporting

confidence: 92%

The determinants of pay settlements: the influence of the national context

Bayo‐Moriones

Galdón-Sánchez

Martínez-de-Morentin

2013

The International Journal of Human Resource Management

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“…We define unionization as all respondents covered by a collective agreement regardless of union membership. Previous studies have differentiated between union membership and coverage, a specification that in some cases has a significant impact on the magnitude of the associated wage premium (Koevoets 2007). In Canada, however, the vast majority of employees covered by a collective agreement are also de facto union members because of the “agency shop” privileges that exist in every provincial jurisdiction and include federally regulated industries.…”

Section: Methodsmentioning

confidence: 99%

Unions and Non-Standard Work: Union Representation and Wage Premiums across Non-Standard Work Arrangements in Canada, 1997–2014

Gómez¹,

Lamb

2019

ILR Review

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The authors examine the association between unionization and non-standard work in terms of coverage and wages. They use data from the master files of Canada’s Labour Force Survey (LFS) between 1997–98 and 2013–14 to define and measure non-standard work and to provide a continuum of vulnerability across work arrangements. The estimated probability of being employed in some form of non-permanent job increased 2.9 percentage points from 1997 to 2014. During that same period, the estimated probability of being in a non-full-time, non-permanent job—another way of capturing non-standard work—increased 2.5 percentage points. Although estimated union wage premiums declined rather precipitously for all groups, the union wage advantage remained highest among non-standard workers. Further, the authors find the union wage premium is largest for the most vulnerable of non-standard workers. In terms of estimates that look across the earnings distribution, the union wage premium among non-standard workers is larger for workers higher up the earnings profile.

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“…One reason why rational workers may join a trade union could be that members earn a higher wage than non-members. There is substantial evidence of a membership wage premium in the USA (see, for example, Budd and Na, 2000;Eren 2009;Schumacher, 1999), 1 whereas the evidence for the UK is more mixed (see, for example, Blanchflower and Bryson, 2010;Booth and Bryan, 2004;Hildreth, 2000;Koevoets, 2007). For Germany, however, the available evidence indicates no link between trade union membership and wages (Fitzenberger et al, 1999;Pannenberg, 2004, 2011a;Wagner, 1991).…”

Section: Foundationsmentioning

confidence: 99%

Risk Aversion, Collective Bargaining, and Wages in Germany

Goerke

Pannenberg

2011

Labour

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We develop an open-shop model of trade union membership in which workers differ in their risk attitudes, and derive conditions under which the bargained wage will fall and union membership will increase with a general rise in risk aversion. Using data from the German Socio-Economic Panel we define broad bargaining units and show that wages decline as average risk aversion of union members in these units rises, controlling for individual effects of risk aversion. Given a negative relationship between wages and employment, this suggests that secular changes in risk attitudes, because of an aging workforce or greater female labour force participation, can help to explain variations in the employment performance of unionized economies.

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Union wage premiums in Great Britain: Coverage or membership?

Cited by 16 publications

References 25 publications

The determinants of pay settlements: the influence of the national context

The determinants of pay settlements: the influence of the national context

Unions and Non-Standard Work: Union Representation and Wage Premiums across Non-Standard Work Arrangements in Canada, 1997–2014

Risk Aversion, Collective Bargaining, and Wages in Germany

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