Union wage premiums in Great Britain: coverage or membership?

Publication type

Journal Article

Author

Publication date

June 1, 2007

Abstract:

This paper presents estimates of union wage premiums for Great Britain and distinguishes between union membership and union coverage effects on wages. For this purpose a panel data system estimator is applied to data from the British Household Panel Survey.
For female workers a coverage premium of 6.1% is estimated whilst no evidence of a union membership premium is found. This result lends support to the by-product theory of Olson (1965) [Olson Jr., M., 1965. The logic of collective action. Harvard University Press, Cambridge (Mass.)]: if female covered members receive other private benefits than a higher wage from the union the coverage premium could be viewed as a by-product. For male workers no evidence is found of a membership premium nor a coverage premium. To investigate potential bias in the estimated union effects particular attention is paid to measurement error in union membership and the inclusion of job-changes in the sample.

Published in

Labour Economics

Volume

Volume: 14 (1):53-71

DOI

http://dx.doi.org/10.1016/j.labeco.2004.12.001

Subjects

Notes

BHPS database copy

Albert Sloman Library Periodicals *restricted to Univ. Essex registered users*

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