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2 edition of critique of the Lewis method for estimating the union/non-union wage differential. found in the catalog.

critique of the Lewis method for estimating the union/non-union wage differential.

John Treble

critique of the Lewis method for estimating the union/non-union wage differential.

by John Treble

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Published by University of Hull in Hull .
Written in English


Edition Notes

SeriesHull economic papers / University of Hull. Department of Economics and Commerce -- 78, Hull economic papers -- 78.
ID Numbers
Open LibraryOL13774359M

The suggestion has been made by Mulvey () that trade unions may be able to influence the allocation of work paid at premium rates in favour of their members and that this may partially explain the existence of a union/non-union differential in average hourly earnings in Australia.   Wage differential studies are prone to two primary areas of criticism. The first is the way in which some of them calculate the additional wages resulting from prevailing wage regulations. The GAO and Beacon Hill studies’ results are based on contracts in which, the authors assert, prevailing wages were miscalculated.

The union effect on wages for black blue-collar workers was 24%, which is in the range of effects found in studies of U.S. unions and above the range of effects found for European unions. Another finding is that black unions compressed wages across skill levels, an effect probably owing to black unions' primary emphasis on improving the lot of. Downloadable! 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.

Which effects understate union wage differential? Product market and threat. According to Hirsch and Macpherson, how large was the union wage advantage over the period of BETWEEN 65 and 80% Union wage advantage rose in late s. Union wage advantage was stable in . Union Membership and Earnings Data Book: Compilations from the Current Population Survey. Bureau of National Affairs. Hansen, Fay. Union membership and the union wage differential. Compensation and Benefits Review. Vol. 30, No. 3 (May/June), pp. Kuttner, Robert. Welcome to the amazing jobless recovery. Business Week Online.


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Critique of the Lewis method for estimating the union/non-union wage differential by John Treble Download PDF EPUB FB2

A reverse regression method of estimating the union-nonunion wage differential is developed using a multiple indicator model. The method provides a test for the multiple indicator model’s validity and suggests that conventional estimation techniques should underestimate the union-nonunion differential.

Empirical estimates show that the reverse regression estimates are larger than Cited by: 1. Estimating Union – Non-union Wage Differential in Hungary Mariann Rigó Central European University Draft paper, preliminary June Abstract This paper estimates the wage impact of trade unions in Hungary.

I use linked employer-employee panel data covering - and including information on 15, firms. Financial support was provided by the S.S.R.C. and the C.L.E. ESTIMATING THE UNION/NON-UNION WAGE DIFFERENTIAL: A STATISTICAL ISSUE Charles Mulvey and John M.

Abowd Prior to the availability of micro-data sets for the U.S. which indicated the union or non-union status of individuals, almost all estimates of the conditional average union/non.

1. Walker,- Journal ofF_ccrnometrics wage differential obtained from the estimated slope coefficients from OLS and the series estimator. Conclusion The issue addressed in the paper is the estimation of the union/non-union wage by:   Table 2 reports union non-union percentage wage differentials for the entire sample as well as for 23 other subgroups of the population.

The IMR model yields an overall union non-union wage differential of %, which is not much different from the % estimated by the by: 1. Union - nonunion wage differentials in the developing world: a case study of Mexico (English) Abstract.

Union-nonunion wage differentials have been extensively studied by labor economists, but for lack of data on the developing world the study has been confined largely to the industrial world. We attempt to estimate the union-non-union wage differ ential through single wage equation tre ating unionism as a dummy.

It gave an estimate of 19 percent, which. In a small open economy a rise in the union/non-union wage differential must lower both union and non-union wages if the unionised sector is labour-intensive. This is easily proved. By the assumption of perfect competition, p (n r), (5) 1 =c(w.

r)=c(xn. r), (6) rememring that y > 1. This chapter is a much condensed version of a larger study surveying recent (–82) empirical work on union relative wage effects in the United States.

The report of the larger study, available now (Jan. ) only in the draft manuscript of the book [62a], contains the documentation for many of the assertions made in this chapter. Downloadable. 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 unobservables in determining individual union propensity concerning the second. observe wages in the absence of unions the effect is very difficult to estimate.

Instead, estimates of union wage effects assume a partial equilibrium framework.2 The union-non-union wage differential (the wage gap), defined as (1) n u n W W W is estimable because we observe the wages of members (W u) and non-members (W n). The theory of equalizing differences refers to observed wage differentials required to equalize the total monetary and nonmonetary advantages or disadvantages among work activities and among workers themselves.

On the conceptual level, it can make legitimate claim to be the fundamental (long-run) market equilibrium construct in labor economics.

The increased interest among labor economists during the s in trade unionism has yielded several estimates of the union-nonunion wage differential. This differential is defined as the percentage wage advantage of a worker represented by a union over a worker with comparable skills and non-pecuniary job attributes but not represented by a union.

Green, Francis, "The trade union wage gap in Britain: Some new estimates," Economics Letters, Elsevier, vol. 27(2), pages George Jakubson, "Estimation and Testing of the Union Wage Effect Using Panel Data," Review of Economic Studies, Oxford University Press, vol.

58(5), pages Stewart, Mark B, Technical (estimation and data) questions continue to make it difficult to tease out causal effects of unions on wages and wage dispersion in union and non-union sectors.

Furthermore, few attempts have been made to distinguish between types of union, despite their potential importance in understanding the wide range of union wage effects.

This paper argues that in an economy with widespread spill-over and standardization, the union-non-union wage differential could be due to (1) effects of union strength (as measured by the degree of unionization) at the establishment or industry level, or (2) selection effects at the individual level.

Abstract. This study finds that the real union-nonunion wage differential has declined only slightly sincea period of falling unionism. The study also finds that, in contrast to earlier research, local (geographic) union density positively affects union and nonunion wages.

Estimating separate equations for members and nonmembers results in a log wage differential of Using only right-to-work states, the sample size is only (including only covered nonmembers), but the union membership effect is still significant without tenure ( with. Download PDF: Sorry, we are unable to provide the full text but you may find it at the following location(s): (external link).

An array of empirical estimates for the union wage differential has resulted from the variety of approaches to estimation.

Lewis () reviews the vast literature that attempts to estimate the union wage effect. Two extremes are represented by Mincer (), who estimates the wage.

Downloadable! We use administrative data from the unemployment insurance system State of Washington to study the magnitude of the wage differential associated with work in the temporary services industry. We find that temp wage rates are 15% to 20% below the levels that might have been expected based on trends during other periods in workers' careers even after controlling for .wage determination, models that provide a new rationale for the existence of wage differentials.

1 Dickens and Katz (a) and Groshen () present excellent reviews of the wage differentials literature that correlates wage dispersion with firm and industrial characteristics.Oaxaca, Cotton and Reimer’s decomposition method has been used to decompose the gross earnings differential between union and non-union workers into explained and unexplained differentials.

The result shows that there exist significant wage differentials between workers in .