Earnings Inequality and Unions in Canada

This paper reports research examining differences in the earnings distributions of unionized and non–unionized workers and the impact of union status on the likelihood of a worker being in each region of the earnings distribution. Average earnings of unionized workers are shown to be higher than those of non–union workers in the first four quintiles, but lower than average earnings of non–unionized workers in the top quintile. Union effects are greatest among workers situated in the lower and middle regions of the distribution, and benefit workers who are typically disadvantaged in the labour market.