RT Generic
T1 Estimating union wage effects in Great Britain during 1991-2003
A1 Chrysanthou, Georgios Marios
A2 Universidad Carlos III de Madrid. Departamento de Economía, 
AB Using a dynamic model of unionism and wage determination we find that the unobserved factors thatinfluence union membership also affect wages. The estimates suggest that UK trade unions still play anon-negligible, albeit diminishing, role in wage formation. It appears that the greater impact of unobservables 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 mostfrom their sorting decision. The significant contribution of unobserved heterogeneity renders the total unionwage differential highly variable across individuals. The endogeneity correction procedure employed yieldsa discernible pattern of the estimated union wage effect relative to OLS and Fixed effects. This is in linewith Robinson (1989a) and Vella and Verbeek (1998) and refutes the pessimistic conclusions reached byFreeman and Medoff (1982) and Lewis (1986) that endogeneity correction methodologies do notcontribute to our understanding of the union wage effect puzzle.
SN 2340-5031
YR 2008
FD 2008-05
LK https://hdl.handle.net/10016/2614
UL https://hdl.handle.net/10016/2614
LA eng
DS e-Archivo
RD 31 may. 2024