Skip to content

Research Paper Working Papers of the ESRC Research Centre on Micro-Social Change 97-05

Instruments and measurement error in the estimation of union wage effect for covered members and non- members in Great Britain

Authors

Publication date

01 Apr 1997

Abstract

This paper presents the first longitudinal estimates for covered union member and covered non-member wage effects in Great Britain. Cross-sectional estimates showed covered union members received a premium of about 10 percent over other workers. These estimates were considered to be inconsistent. Longitudinal estimates, that accounted for fixed effects, endogeneity, and measurement error indicated that OLS estimates are downward biased. The 'true' union wage differential probably lies in the region around 30-35 percent. There is a large negative selection effect to union membership. No robust estimate could be found for covered non-members.

Subjects

Labour Market, Labour Economics, and Wages And Earnings

Notes

working paper

#494242


Research home

Research home

News

Latest findings, new research

Publications search

Search all research by subject and author

Podcasts

Researchers discuss their findings and what they mean for society

Projects

Background and context, methods and data, aims and outputs

Events

Conferences, seminars and workshops

Survey methodology

Specialist research, practice and study

Taking the long view

ISER's annual report

Themes

Key research themes and areas of interest