Estimating union wage effects in Great Britain during 1991-2003

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Show simple item record Chrysanthou, Georgios Marios
dc.contributor.editor Universidad Carlos III de Madrid. Departamento de Economía 2008-06-03T10:37:22Z 2008-06-03T10:37:22Z 2008-05
dc.identifier.issn 2340-5031
dc.description.abstract Using a dynamic model of unionism and wage determination we find that the unobserved factors that influence union membership also affect wages. The estimates suggest that UK trade unions still play a non-negligible, albeit diminishing, role in wage formation. It appears that the greater impact of un observables in determining individual union propensity concerning the second period under analysis, versus past unionisation experience, implies that those remaining in unions during (1997-2002) gain most from their sorting decision. The significant contribution of unobserved heterogeneity renders the total union wage differential highly variable across individuals. The endogeneity correction procedure employed yields a discernible pattern of the estimated union wage effect relative to OLS and Fixed effects. This is in line with Robinson (1989a) and Vella and Verbeek (1998) and refutes the pessimistic conclusions reached by Freeman and Medoff (1982) and Lewis (1986) that endogeneity correction methodologies do not contribute to our understanding of the union wage effect puzzle.
dc.format.mimetype application/pdf
dc.language.iso eng
dc.relation.ispartofseries UC3M Working papers. Economics
dc.relation.ispartofseries 08-14
dc.rights Atribución-NoComercial-SinDerivadas 3.0 España
dc.subject.other Union status
dc.subject.other Union wage effects
dc.subject.other Unobserved heterogeneity
dc.subject.other Dynamic model of unionism and wage determination
dc.title Estimating union wage effects in Great Britain during 1991-2003
dc.type workingPaper
dc.subject.jel C33
dc.subject.jel J31
dc.subject.jel J51
dc.subject.eciencia Economía
dc.rights.accessRights openAccess
dc.identifier.repec we082214
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