C H A P T E R

The Economic Impact of Unions

12

© 2003 South-Western

2

Unadjusted Union–Nonunion Earnings Differentials, 2001

Table 12.1

Source: Bureau of Labor Statistics, Employment and Earnings (January 2002), Tables 42, 43. National averages are calculated as weighted averages using the industry statistics.

© 2003 South-Western

3

The Spillover and Threat Effects

Figure 12.1

© 2003 South-Western

4

The Relationship Between the PercentageOrganized and the Size of the Union Wage Effect

Figure 12.2

© 2003 South-Western

5

The Union–Nonunion Wage Differentialover Time, 1920–2000

Figure 12.3

SOURCES: George E. Johnson, “Changes over Time in the Union–Nonunion Wage Differential in the United States,” in Jean-Jacques Rosa, ed., The Economics of Trade Unions: New Directions (Boston: Kluwer Nijhoff, 1984): 5. The data for 1990 to 2000 are from Barry Hirsch and Edward Schumacher, “Private Sector Union Density and the Wage Premium: Past, Present, and Future,” Journal of Labor Research 22 (Summer 2001): Figure 6.

© 2003 South-Western

6

Union Wage Effects in the Public Sector

Table 12.2

SOURCES: (a) Stephen J. Trejo, “Public Sector Unions and Municipal Employment,” Industrial and Labor Relations Review 45 (October 1991): 166–80; (b) Timothy D. Chandler, “Sanitation Privatization and Sanitation Employees’ Wages,” Journal of Labor Research 15 (Spring 1994): 137–53; (c) Harris L. Zwerling and Terry Thomason, “Collective Bargaining and the Determinants of Teachers’ Salaries,” Journal of Labor Research 16 (Fall 1995): 467–84; Caroline Minter Hoxby, “How Teachers’ Unions Affect Education Production,” Quarterly Journal of Economics 111 (August 1996): 671–718; and (d) Edward J. Schumacher and Barry T. Hirsch, “Compensating Differentials and Unmeasured Ability in the Labor Market for Nurses: Why Do Hospitals Pay More?” Industrial and Labor Relations Review 50 (July 1997): 557–79.

© 2003 South-Western

7

Employee Benefits Received by Union and Nonunion Private Sector Workers, 2001

Table 12.3

SOURCE: U.S. Bureau of Labor Statistics, News: Employer Costs for Employee Compensation (2002) <http://www.bls.gov/news.release/ecec.t07.htm>.

© 2003 South-Western

8

Estimates of the Union Impact on Wages UsingCross-Sectional Data

Table 12.4

SOURCE: Constructed from David G. Blanchflower, “Changes over Time in Union Relative Wage Effects in Great Britain and the United States,” NBER Working Paper 6100 (July 1997): Tables 1, 2, 4, and 5.

© 2003 South-Western

9

The Union WageEffect among Demographic andOccupational Groups, UK and the USA, 1993

Figure 12.4

SOURCE: Constructed from statistics provided in Blanchflower, “Changes over Time in Union Relative Wage Effects in Great Britain and the United States.”

© 2003 South-Western

10

Estimates of Union Impact on WagesUsing Longitudinal Data

Table 12.5

SOURCES: (a) Barry T. Hirsch and Edward J. Schumacher, “Unions, Wages, and Skills,” Journal of Human Resources 33 (Winter 1998): 201–19. (b) Barry T. Hirsch and Edward J. Schumacher, “Union Wages, Rents, and Skills in Health Care Labor Markets,” Journal of Labor Research (Winter 1998): 125–47.

© 2003 South-Western

11

Regression Estimates of Union–Nonunion Wage Differentials; Cross-Sectional Data

Table 12A.1

SOURCE: Adapted from Barry T. Hirsch and Edward J. Schumacher, “Union Wages, Rents, and Skills in Health Care Labor Markets,” Journal of Labor Research 19 (Winter 1998): 125–47. T-ratios are in parentheses. Regressions also included a control for marital status, employment sector (public vs. private), and an intercept term.

© 2003 South-Western

12

Union–Nonunion Wage Effects: Longitudinal Data

Table 12A.2

SOURCE: Adapted from Barry T. Hirsch and Edward J. Schumacher, “Union Wages, Rents, and Skills in Health Care Labor Markets,” Journal of Labor Research 19 (Winter 1998): 125–47. T-ratios are in parentheses.

E N D