Union effects on pay levels in Britain |
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| Institution: | 1. School of Economics, Renmin University of China, Beijing, China;2. Department of Economics, Louisiana State University, Baton Rouge, LA 70803, United States;1. School of Geographical Sciences, University of Bristol, UK;2. School of Sociology, Politics and International Studies, University of Bristol, UK;3. Department of Geography, University of Sheffield, UK;4. Department of Politics, Languages & International Studies, University of Bath, UK;5. Department of History, University of Bristol, UK |
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| Abstract: | The contraction of union representation in Britain raises the question of whether or not unions still achieve a wage premium. Analysis of matched employer–employee data from the 1998 Workplace Employee Relations Survey shows that there is now no demonstrable premium for private sector workers in general. However, unions do achieve a wage premium of around 9% for about half of employees covered by collective bargaining arrangements. The effect of union bargaining spills over to other employees in the same workplaces. The paper identifies circumstances where union effects are strongest—employer endorsement of union membership, high collective bargaining coverage and multi-unionism. |
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