Trade Union Concentration and the Determination of Wages: The Case of Teachers in England and Wales

Multi-unionism is a common feature of the industrial relations scene, yet to date there has been relatively little economic analysis of its effects, in particular on the outcome of wage negotiations. In this paper, we examine the impact of multi-unionism—specifically, the degree of union membership concentration—on the determination of the relative pay of a particular occupational group, namely that of schoolteachers in England and Wales. We measure teacher trade union concentration using the Herfindahl index of concentration, and find that, after controlling for other possible influences, changes in the value of this index have a positive impact on schoolteachers' relative pay. In addition, we find union membership concentration to be a better indicator of 'union pushfulness' effects in wage determination than the traditional measure, union density. These findings are potentially of wider significance for the analysis of wage determination in multi-union environments.     

Measuring the Union–Nonunion Wage Gap Using Propensity Score Matching

This paper examines the union wage effect among private sector wage and salary workers using the Panel Study of Income Dynamics data. We estimate the average union premium by utilizing semi (non) parametric matching techniques, as well as by linear regression model. Our analysis reveals: (1) conditioning linearly on covariates understates the union wage effect. In addition, matching results under the alternative support conditions indicate that selection on unobservables has at most a modest impact on average. (2) Log wage estimations lead to an overstatement of the union wage effect. Solving these problems yields the union membership premium as 21.5 percent.     

Collective Bargaining Coverage of Union Members and Nonmembers in the Public Sector

Arguably, models of union status and union wage effects in the public sector should' consider workers in three categories: not covered, covered nonmember, and covered member. Estimates show that stronger union security laws are associated with higher percentages of covered members and nonmembers, that right-to-work laws do not affect union coverage or membership relative to where no union security law exists, and that the wages of covered members are higher than those for covered non-members.     

Who Queues for a Union Job?

A survey of unemployed workers was undertaken to determine these individuals' union membership preference. Standard probit specifications reveal that those unemployed workers more likely to require a union position to return to work include female, minorities, workers with greater experience, and those with higher reservation wages. However, both the duration of unemployment and the perception of widespread unemployment lower the likelihood of such a requirement. These results are consistent with the wage and tenure effects of unions and with the influence of unemployment characteristics on job search.     

The Impact of Union Corruption on Union Membership

This paper examines the relationship between union corruption actions and union membership. State‐level data from the Office of Labor‐Management Standards, and other sources, are utilized over two study periods (1974–2000 and 2001–2008) to test three hypotheses, including the union corruption hypothesis, as possible explanations for the decline in union membership in the United States over time. Although our initial findings suggest a negative relationship exists between union corruption and membership, after removing the possibility of simultaneous equations bias, we find that changes in corruption do not influence changes in union membership in our sample.     

The Union Wage Effect in Japan

Previous studies point to Japanese labor unions’ lack of bargaining power that results from their organization at an enterprise level. However, a detailed examination of the institutional setting backed by the Labor Standard Law and Trade Union Law reveals that unions have strong bargaining power against deteriorating work conditions. This paper examines the effect of unions on wages using the Japanese General Social Surveys 2000–2003, which cover a period of economic stagnation. We find a robust union wage premium for both males and females. A Cotton–Neumark decomposition reveals that about one‐fifth of union workers’ higher wage is explained by the difference in the union and nonunion wage structures. We also can confirm the union wage compression effect using the DiNardo, Fortin, and Lemieux (1996 ) method. Union workers are likely to think that they will not find jobs with similar compensation packages if they leave their current jobs. In summary, unions in Japan contribute to an increase in the average wage and compress the wage distribution among their workers. This result is reconciled with previous findings by considering the uniqueness of the macroeconomic conditions of the sample period.     

The Duration of Union Membership in Italy: A Research Note

Thanks to direct access to union databases, this note can answer two new questions in industrial relations: how long union membership lasts and what are the determinants of its duration within an open‐shop context. This also allows for conceptualizing union membership as a much more dynamic phenomenon than in previous studies, where it was considered a static condition whose causes or effects were to be investigated. Regression analysis applied to a sample of 29,035 Italian workers highlights that union membership duration is a positive but declining function of age. Furthermore, women, flexible workers, foreign ones, and those working in cities tend to show less attachment to union membership than the other workers.     

Inequality and Union Membership: The Influence of Relative Earnings and Inequality Attitudes

Using surveys from the International Social Survey Programme covering the period 1985–2002 for seven European countries (West and East Germany, Sweden, Norway, Italy, the Netherlands and Great Britain), we examine the effect of relative earnings on union membership and show that union density is higher among workers in the intermediate earnings group than among low or high earners. Next, we examine the association of inequality attitudes with union membership and demonstrate that union membership is not only motivated by instrumental considerations related to relative earnings, but also by normative concerns about inequality. We interpret our findings suggesting that rising earnings inequality is in itself a source of union decline.     

Family,Place and the Intergenerational Transmission of Union Membership

This article examines the importance of family, gender and place to the intergenerational transmission of trade union membership. Using data from the British Household Panel Survey, we show that union membership among parents influences the union joining behaviour of young workers. These effects are particularly apparent among daughters and where both parents are members of unions. The effects of parental membership are also stronger among those born in areas characterized by relatively high levels of union density. Parental effects are therefore important to our understanding of the persistence of regional variations in levels of trade union membership.     

Trade Union Decline and Union Wage Effects in Australia

Union density in Australia fell precipitously in the 1990s. This study investigates how union wage effects may have changed as a result. The findings from 1993 data suggest that union/nonunion wage differentials were very small, especially among workers in high-density industries. By 2001 the overall union wage effect had increased significantly; however, the union/nonunion wage differential was no longer correlated with union density at the industry level.     

Does Strike Action Stimulate Trade Union Membership Growth?

Most of the literature on strikes has addressed one of four issues: causation, variation between sectors and countries, trends over time and the relationship between strikes and other forms of collective and individual protest. Very little research has addressed the equally important questions of strike outcomes and trade union membership despite the substantial body of research on the causes of trade union membership decline and strategies for membership growth. In this paper we reverse the usual sequence of trade union membership as a causal factor in the genesis of strikes and examine the impact of strikes on trade union membership levels. After setting out the relevant theory and hypotheses, we use a unique seven‐year dataset of trade union membership joiners and leavers from a major British trade union with a substantial record of strike activity. Controlling for other possible determinants of trade union membership, we find that months in which there is strike action, whether national or local, are associated with a significantly higher rate of membership growth, measured both by the number of joiners and by the ratio of joiners to leavers. Data from new union members suggest that perceived injustice and perceived union effectiveness both motivate the decision to join.     

Raising Trade Union Membership Concentration, 1892–1987: The Relative Effects of Mergers and Membership Change

A number of recent studies measure trade union membership concentration using the Herfindahl index. This study uses the same measure to examine the relative effects of the different factors that influenced the level of British union membership concentration between 1892 and 1987. Five factors are identified as influencing this development: mergers, formations, dissolutions, breakaways, and membership change. Marked occupational differences in the relative effect of these factors are shown. In aggregate terms, mergers and membership change tend to be complementary in effect until 1946 and counteractive thereafter.     

The effect of changes in public sector bargaining laws on teacher union membership

This study uses a simple model of demand for and supply of union services to analyse the effect of public sector bargaining laws on teacher unionization. Relying on a nationally representative dataset covering 2001–2018, I exploit natural experiments that occurred in several US states to identify the effect of legal and institutional changes weakening collective bargaining rights of teachers on their union membership rate. Based on both difference-in-difference estimation and synthetic control method, I find that the new legislation significantly reduces teachers’ union membership and that the impact of the anti-union bills on unionization evolves, growing in magnitude, over time. I also find that the magnitudes of the impacts are greater for female, younger and minority teachers.     

Does Technological Change Affect Union Wage Bargaining Power?

This paper uses data from a survey of Canadian establishments to consider the effects of computer-based process technological change on wage bargaining power. The analysis finds that union wage differentials for blue-collar workers as a whole were lower among firms that had introduced process computerization than among those that had not. The relationship between technological change and the union wage premium differed, however, for skilled and unskilled labour. The union wage effect was lower for skilled workers and higher for general manual occupations in the sub-sample where process computerization had occurred. Explanations for these observed relationships appear to involve both economic and institutional components.     

The Effect of International Unions on Wage Determination in Canada

This article uses collective bargaining agreement wage data spanning 1964–92 to analyse the effect of international unions on wage determination in Canadian manufacturing. Real wage levels for international unions relative to domestic unions are estimated to decline from approximately 4 per cent higher in the 1960s to 4 per cent lower in the 1990s. International unions are also found to be more responsive to US economic conditions. Finally, affiliation with different union federations is a significant determinant of real wage outcomes with AFL–CIO affiliated unions having lower real wages, on average.     

Trade Unions and Political Participation in the European Union: Still Providing a Democratic Dividend?

Decline in electoral participation is a feature of many Western democracies. In this paper, we focus on the relationship between trade union membership and political participation. Workplace authority structures, trade union membership and union presence have been identified as important influences on electoral participation. Based on a survey of employees in 15 member states of the European Union, we test for a relationship between political participation, union membership and union workplace presence. The independent effect of trade union membership on political participation was found to be both significant and positive and is associated with higher levels of political activism and electoral participation. Furthermore, an institutional context that facilitates high levels of union density seems likely to have an overall positive effect on citizen participation.     

The Viability of Trade Union Organization: A Bargaining Unit Analysis

The paper develops a model of trade union behaviour based on the concept of the viable bargaining unit. Viability rests on five conditions: membership level, service level, membership participation, employer recognition, and facilities. Unions are seen as portfolios of viable and inviable bargaining units. Six propositions are derived, concerning union scale, growth, the impact of statutory recognition provisions, the emergence of conglomerate unions, governance structures, and relations with employers. Employer dependence is central, and a simple game‐theoretic approach is used to discuss employer co‐operation. Viability at the union level is achieved by portfolio diversification and employer co‐operation.     

工会组织对工资收入的影响：基于制度因素视角——来自英国的经验证据

经济规模、劳动者自身素质及制度等异质性因素,引致劳动力市场具有非完全竞争性的特征,在一定程度上解释了劳动者的工资差异现象。以英国1996和2001年数据为例,在考虑行业与劳动者素质异质性等控制变量情况下,从制度因素视角就工会组织对工人工资的影响进行考察。结果表明,工会成员身份对工人工资作用显著,能产生超过10%的溢价。因此,工会组织的社会生活中的地位与影响力,及其增强工人对雇主议价能力的作用应予重视。     

Indicative and Updated Estimates of the Collective Bargaining Premium in Germany

This study provides updated evidence on the union contract differential in Germany using establishment‐wide wage data and two estimation strategies. It provides pairwise estimates of the union differential based on separate samples of collective bargaining leavers and joiners vis‐à‐vis the corresponding counterfactual groups. We report that average wages increase by 3 to 3.5 percent after entering into a collective agreement and decrease by 3 to 4 percent after abandoning a collective agreement. Excluding establishments that experience mass layoffs does not significantly influence these net findings, although such establishments record wage losses—statistically insignificant for joiners but up to 10 percent in the case of leavers, as compared with the counterfactuals. The backdrop to these new indicative estimates, which are properly conditioned on establishment size and industry affiliation, inter alia, is one of wage stagnation and continuing union decline.     

The Union Relative Wage Effect for Academic Librarians

This note investigates the impact of labor unions on the starting salaries of academic librarians. Using data collected from members of the Association of Research Libraries (ARL) and employing standard ordinary least squares (OLS) and seemingly unrelated regressions techniques, the union relative wage gap was estimated annually over the 1989–1998 time period. Three important results were found. First, unionized academic librarians received a positive and significant union wage premium throughout most of the decade studied. Second, this wage premium declined in magnitude over time following the trend in the economy as a whole. Lastly, by the end of the sample period, the wage effect had disappeared and was no longer significantly different from zero.